Modular homes used to pretty much be a glorified mobile home. Things have changed quite a bit. The structural materials used today are mostly indistinguishable from those used in site built homes. It could aslo be agrued that they are even more structurally sound because the components must be manufactured to withstand the moving and set up process - though this is moot really, since no site built home is meant to be uprooted and moved later anyway. A good reason why modulars are cheaper is that they are manufactured on a production line. Efficient production lines mean less manhours, and labor costs go down. Quality is also easier to ensure than it is for a site builder who may be utilising underpaid contractors to whom time is money. The only area I can really pick about in today's modular homes are the exterior finishes. I havent seen even one with decent vinyl siding - trust me, there is a huge difference between the cheap stuff and the high grade stuff. Fascia trim and soffits are the same also. While the material seems to be applied correctly - it is of a very inferior quality. Eaves are too small on all but the most expensive modular homes I've seen.

 

Can you get mod homes with a brick exterior? or would they add teh brick exterior on site?

 

Check with your lender too. My brother-in-law in Seattle just bought a home but the lender would not give him a loan on a modular house. Doesn't make sense to me but that's what happened to him. Probably varies by lender.

 

Im in construction myself although i dont build houses im a handyman... Several friends of mine own these modular homes in the north east, and theyve lived in them for years. None of them have any complaints and all of them are very happy with their investments. My only advice is to do your research on the company you want to do business with and make sure they have good ratings with the local orginizations and BBB too. I know i would not hesitate to buy a modular home if i bought a plot of land with no liveable building on it. good luck
Bob

 

I have lived in my mod. for 12 yrs. and love it. Mine has 2x6 exterior walls and lots of insulation. I have added on since, so I guess I have the best of both worlds.

 

i have talked about this in another thread- i am a mortgage broker and you will pay bit more for a loan on a prefab/mod. home than a standard construction home...why because if it is cheaper to build than it is not worth as much(sorry its not me its the person lending the money, if it was up to me eneryone would get a mortgage...on the other hand i guess that is why there is no "wlihntr bank and trust"). as far as construction...i have not heard anymore bad things about prefabs. than i have about sticks. just be prepared to pay more for the loan

 

It's a feasibly option, as there are good ones out there. One thing that is often overlooked is when you have to hire a builder to do the site work and handle the installation. Make sure you have someone reputable for this part.

 

Just curious: if I get an estimate from one conventional builder and get my mortgage based on that amount, then I wind up going with another conventional builder because he's cheaper, will the bank then charge me a higher rate because I'm spending less money? You're saying that modulars are charged a higher rate because they're cheaper to build. If that's the reasoning, then they should charge Ryan home-owners more, because they're cheaper to build, right? I'm just trying to figure out the logic here, which is escaping me.

 

not if they were the same sort of counstruction(both as you said standard construction-stick built)however loand amount will affect rates and closing costs. for instance if you get a quote on a loan of $200,000 and then come back and say i only need $150,000 you will not get as good a rate or have to pay more in closing costs. as i have said before a prefab/mfgr home will cost an additional 1.5% over a stick build, like i said i dont make the rules the industry does and if all the lenders are charging more for a loan on that type of constrcution we have to live with it.
you said you were trying to figure out the logic...if a company can find any reason to charge more for a product or service, the will

 

If you can do your loan as a fannie mae or freddie mac loan. There is not a bump in your rate for a modular home. But, if you have to go subprime, high loan to value (LTV) or rough credit then you will have a bump in your rate. But alot of the conforming programs that I use do have .50 adjustment.

 

that is really good, what lender is that. my primary lender charges me 1.5% on an "A" paper conventional 30 for a prefab/mgfr home

 

We are direct lenders, but Wells is one of our investors. On their conforming products, they charge .500 on the back for manufactured.
CORRECTION my FHLMC/FNM add on sheet also shows a .500 adjustment for manufactured.
Now the FHLMC ARM doesn't show an adj for manu.

 

Once again you all have come through with an abundance of information. Big thanks are in order. I will keep you all posted.

Thank You,


Michael.....