Modular Home FAQS

Mortgages are loans secured by real estate, or land, and the permanent structures built on the land. Many lenders will finance a manufactured modular home. If the lender wants to charge a higher interest rate after reviewing your plans and approach then look for another mortgage provider.

A bank will want to understand the risk for any mortgage they provide. A bank realizes that the a modular home construction approach is a valid and accepted method. They will expect the value of the property increase over time like comparable real estate in the area. For a bank or lending institution a modular homes is as safe as a traditional site-built home.

Modular homes hold their value the same as their on-site built counterparts do; they do not depreciate in value.

Home loans for modular homes are the same as site-built homes. Insurance premiums for modular homes are the same as site-built homes.

No. A modular home needs to have a basement. Modular homes are constructed to be placed on a foundation. The fondation cab be either a concrete or block foundation.

The average cost of building a foundation for a modular home is between $7 and $30 per square foot. Foundation prices depend on the type, location, and size of home.

A crawl space starts at may be as low as $6,000, while building a basement may be $20,000 for the same size home.

From a legal standpoint, the primary difference between modular and manufactured homes is that modular homes are held to the same local, state, and regional building codes required for on-site homes.

Manufactured homes are held to a federal code set by the Department of Housing and Urban Development (HUD).

Manufactured Homes

This means that the home is completely constructed in a factory and then transported to the home site. Once they arrive at their destinations, they are indistinguishable from site-built homes. They are not usually moved again. This allows the entire process, start to finish, to be overseen with consistency and accuracy, which cuts down on many of the delays and disruptions that may occur with a traditional stick-built home. They are built according to federal construction codes from Housing and Urban Development (HUD).

Modular Homes

This type of home is also built in factories, but are governed by local state building codes (although sometimes states will adopt the federal code). Modular homes are either built on a permanent chassis or on a temporary one. Homes built on a permanent chassis are referred to as being “on-frame” and those built on temporary ones are referred to as “off-frame.” Whether a home is built on- or off-frame will affect how the home is assembled at its destination site.

Mobile Homes

A mobile home is a manufactured home built prior to June 15, 1976. They are now obsolete due to HUD policy changes in 1976. They have since been replaced by modern manufactured homes.

The average modular home costs $50 to $100 per square foot or between $60,000 and $200,000 for a base model with delivery only.

Modular home prices depend on the floor plan, number of bedrooms, and customizations. Setting up and installing a modular house adds $30 to $60 per square foot.

It is important to note that not all home sites will have proper access to allow for the delivery of a modular home. There are space consideration as special equipment (a crane for example) may be needed to make the process come together.

Moreover, your municipality may even have restrictions on modular homes, so it’s important to check on this while making your decision.