If you are looking for a home that will appreciate over time and that has many options for improvements and extensions, a modular home could be the perfect option for you. If you're more interested in saving money and being able to move your house from one place to another, a prefab house may be the best option for you. A modular house is built in sections in a factory. The source site is prepared while the sections are being manufactured. Once the site is ready and the sections of the modular house are complete, the parts are transported to the original site.
Centennial Homes then places the sections in the mezzanine or basement and completes the rest of the work required for the final inspection and certificate of occupancy. While a modular home is a prefab house, it's not the same thing as a “prefab” or “mobile” home. In the Department of Housing and Urban Development (HUD), modular homes are built following the same local, state, and county building codes as site-built homes. Prefab homes, on the other hand, are built in accordance with the federal HUD Code.
The HUD requires that a prefab house be built on a permanent chassis rather than a base. Modular homes are available in many of the same styles as site-built homes. The most common styles offered by Centennial Homes are the ranch and the divided lobby. We can build quite elaborate contemporary styles that are indistinguishable from their site-built counterparts.
And as with site-built home plans, modular plans can be customized. Walls that don't support load can often be moved or removed, and all kinds of extras can be added, from a garage to an attic, a terrace or a porch. Financing a modular home is the same as financing a new construction built on site. The mortgage loan begins as a construction loan that is disbursed in several “draws” as construction progresses toward predetermined milestones.
For example, the first drawing can be done after the ground has been excavated and the next after the foundation has been laid. The work must be inspected at every stage. Once it has been determined that the work has been successfully completed, the buyer is asked to sign the payment so that the next phase of construction can begin. Once all of the money on the construction loan has been disbursed and the buyer takes possession, the loan becomes a standard mortgage loan. The main benefits of modular construction compared to on-site construction are that modular construction has stricter quality control.
Every component in every home is manufactured exactly the same way every time, and the results of each process are inspected several times before the house leaves the factory. In addition, factory construction ensures that the climate is not a problem. Because the house is built indoors, there's no need to worry about weather-related damage or delays. Finally, modular homes are less expensive than site-built homes because volume discounts on materials and automated processes keep prices low.
A comparison conducted by the National Association of Home Builders revealed that the average construction cost of a modular home is approximately 11% lower than that of a site-built home. The time it takes to build a modular home depends on size and style, but the general guideline for finishing works in a factory is one to two months. According to the National Association of Home Builders Research Center, modular homes are delivered to the home site 70 to 90% in advance. It takes just a few days for a local contractor and finishing crew to assemble the house and prepare it for the move.
Built off-premises and in a controlled environment, according to the federal code commonly known as HUD, prefab houses are built in one or more sections and are transported and installed on site. They can be placed on pillars, on a mezzanine or on conventional foundations, depending on your needs. The HUD Code requires that these homes be built to specific standards of strength, durability, fire resistance and quality. Modular homes are built off-site, in a controlled environment, with the same local, state, or regional codes that all homes are built on conventional sites and include delivery to the site.
They must be placed and permanently attached to a mezzanine or to the foundation of a basement. The construction of a modular home must comply with local building codes and regulations in the area where the house will be located. It's true that prefab homes tend to be less expensive overall, but the wider range of mortgage options for a modular home could offer qualified borrowers the ability to access a modular home more quickly and easily, with more loan options and more simplified loan processing. In addition to other considerations, such as customization and mortgage options, knowing the difference between modular and prefab homes will help you make the right decision.
If you finance a modular home with a construction loan, you may need a higher credit rating and a lower debt-to-income ratio to qualify, compared to the credit rating requirements for buying an existing home. Compared to new construction built on site, modular and prefab homes are a more economical path to owning a housing. You may have to spend a lot of time researching different modular home companies to find one that offers the services and designs you're looking for. While the construction process differs quite a bit from that of traditional homes, it would be difficult to identify a modular home just by looking at it.
Depending on the land costs and the model you choose, a new modular or prefab construction may even cost less than an average existing home. Like homes built with sticks in place, modular homes are placed on permanent foundations and often have full basements or tight spaces. Modular homes are built to a very high construction standard and have 2 x 6 exterior walls and 2 x 4 interior walls.
