Modular Homes

Modular Homes are built in sections, in a factory and then carried over to the building site where they are assembled on a foundation.

It is important to appreciate the difference between modular homes and a manufactured home. The two terms are sometimes used interchangeably, which can be very misleading.

By contrast to a Modular Home, a manufactured home is normally built to the Federal Construction Safety Standards Act and referred to as HUD approved. This code requires homes to be constructed on a steel frame and are typically built in box-like sections and transported to the site where they are anchored to a permanent foundation.

Some communities have zoning restrictions on Manufactured Homes, so you need to check with your local authorities to find out if such restrictions apply to your community.

A further complication with manufactured homes is the fact that most lenders will not loan on them, limiting your choice of lenders. Lenders that do finance manufactured homes will require an appraisal of the property that will use other manufactured home sales in the area as comparables.

Modular Homes have no such restrictions with us. They are treated just like a conventional stick built home by local authorities, construction lenders and mortgage companies.

Advantages of Modular Homes:

- Highly engineered

- Generally slightly lower cost per square foot.

- Built in a factory environment, eliminating timber warp resulting in improved fit.

- Efficient building process and material usage saves on costs and material waste.

- Speed of construction cuts down the time frame tremendously, yielding interest savings on your construction loan.

- Built to meet or exceed local standards

Negatives for Modulars:

- Although many modular homes are equal to or exceed the quality of site-built homes, there are still some people (including appraisers, lenders, and potential buyers) who look negatively on Modular Homes.  Many appraisers will value a modular home slightly lower than the same home that is site built. This may or may not matter when it comes time to finance the project.

Fortunately, there are now plenty of quality modular manufacturers and this practice is not as common now as in past years when many modular homes were basically glorified "double-wides."

- Generally limited to the designs offered. Customization, other than cosmetic, is more difficult.

Construction Loans for modular Homes

Construction Loans are first and foremost reimbursement loans. This means that the construction lender makes payments as various stages of work are carried out.

A modular home is delivered to the site in one delivery. Typically, manufacturers require a large deposit prior to beginning work on your home and will want final payment upon delivery or right after.

We have several loan programs available to finance modular home construction, depending on the customer's qualifications, owner-builder or use of a GC, and down payments desired.

Several of our programs include "curb-side funding" for the home.

Please contact us to discuss your needs and we will assist you in securing the best program for your situation.

Please start by completing our Owner Builder Information Request Form. We will not be able to properly discuss your project with you until you complete the Information Request Form.

Ten modular homes facts from the Modular Building Systems Council:

• Modular homes are built with components constructed in a controlled factory environment to the same stringent building codes as are traditionally built homes.
• Modules are 90-95 percent complete when they are shipped from the factory to the building site to be affixed to the conventional foundation.
• Two or more sections, 12 to 16 feet wide and up to 60 feet long are combined to create the finished building.
• Modules may be stacked to make two or three story single family homes, apartments or office buildings.
  
• Modular homes are generally shipped within a 300 mile radius of the manufacturing facility.
  
• The average time for completing a modular home is 2 to 4 weeks.
  
• Home buyers can realize considerable savings by choosing a home constructed of modular components over a traditional site-built house.
  
• Modular housing meets the design and budget needs for both affordable housing and high-end luxury housing.
  
• In 1996, approximately 37,000 housing units were constructed using the modular system.
  
• Forecasters see the modular housing industry continuing to increase its market share.
  

There are approximately 50 modular manufacturer members of the Building Systems Councils of the National Association of Home Builders.

You can obtain a free directory of modular manufacturers and the color brochure "The Most Frequently Asked Questions and Answers ...Modular Homes" by calling the Building Systems Councils at 800-368-5242 x8576 or writing the Modular Building Systems Council at National Association of Home Builders, 1201 15th Street, NW, Washington, DC 20005.

Some more Modular Facts from the National Association of Home Builders:

• Once all building materials arrive at the factory, some manufacturers can assemble modules in a single day.
• Typically, a two-story, 2,500 sq. ft. home can be constructed in a factory in under a week.
• Aside from any cost savings, modular homebuyers benefit from the short assembly time of their home – reducing any amount of weather damage or home site vandalism.
• Over the life of the home, modular homes save money because they are incredibly efficient.
• In 2004, 42,700 modular homes were constructed in the United States. From 1992-2002, modular housing production increased 48%
• One of every ten homes built in the northeast is a modular home. That region accounted for 29% of the nation’s modular activity in 2001.
• The South Atlantic region was a close second with 26%, and the Great Lakes region third, accounting for 24%.
• The most popular states for modular construction are North Carolina, Michigan, and New York.