Real Estate

2022 Modular Home Prices | Cost To Build Prefab House

Modular home prices are $80 to $160 per square foot on average. Prefab, manufactured, and modular homes cost $120000 to $270000 to set up and install
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Average Modular Home Cost

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.

Start by getting free quotes from modular home builders near you or view the different plans and prices list below.

Modular Home Prices Square Footage Base Model Cost Total Finished Cost 1 $50 – $100 $80 – $160 800 $40,000 – $80,000 $64,000 – $128,000 1,000 $50,000 – $100,000 $80,000 – $160,000 1,200 $60,000 – $120,000 $96,000 – $192,000 1,500 $75,000 – $150,000 $120,000 – $240,000 2,000 $100,000 – $180,000 $160,000 – $300,000 2,500 $125,000 – $215,000 $200,000 – $365,000 3,000 $150,000 – $260,000 $240,000 – $430,000

  • Base – Typically includes delivery and setting the modules in place by a crane and a small crew.
  • Finished – Typically includes land preparation, foundation, install and buttoning up, utility construction, permits, and optional additions.

Modular homes come in a variety of styles, including Ranch, Cape Cod, two-story, duplex, modern, and French country. Each builder may quote different services for their base and turn-key finished homes. Always check with the builder to make sure what exactly they include in the price.

Manufacturers build 90 percent of modular homes in a factory within 1 to 2 months, then deliver it in pieces to the site. Contractors prepare the land, connect the sections onto a foundation, and hook-up the utilities to complete construction.

Average Modular Home Cost National Average Cost $180,000 Minimum Cost $40,000 Maximum Cost $500,000 Average Range $120,000 to $270,000

  • Modular home building costs 10 to 20 percent less than stick-built homes, are built 30-60% faster, and last just as long.
  • They’re more energy-efficient and have lower monthly expenses than stick-built homes.
  • They appreciate in value like site-built homes and have greater construction and material quality.
  • They are generally safer and able to withstand flooding and hurricanes better than stick-built homes.
  • Select from pre-designed plans or customize your own new home.

Table of Contents

  1. Average Modular Home Cost
  2. Modular Home Prices
    • Cost Per Square Foot
    • Plans & Prices List
    • Custom Design
    • Modular Duplex
    • Small, 2-Story & Log Homes
    • House Kits
  3. Average Cost To Build A Modular Home
    • Land & Site Prep
    • Foundation
    • Delivery & Moving
    • Set-Up & Install
    • HVAC, Electrical & Plumbing
    • Tax & Permits
    • Basements, Garages, Decks
    • Modular Extension
  4. Prefab Homes Prices
    • Cost Per Square Foot
    • Modular vs. Manufactured
  5. Pre-Built Home Prices By Brand
    • Champion
    • Clayton
    • More…
  6. Pros and Cons of Modular Homes
    • Modular vs. Stick-Built
  7. Frequently Asked Questions
  8. Hiring a Modular Home Builder
  9. Home Builders Near Me

Modular Home Prices

The average cost of a 1,500 sq. ft. modular home is $75,000 to $150,000 or $50 to $100 per square foot for a base model, not including customizations, assembly, or on-site finishing work. For the same house, expect to pay $120,000 to $240,000 total for a complete turn-key installation.

Modular Home Cost Per Square Foot

The average modular home costs $50 to $100 per square foot for delivering the base unit, or between $80 and $160 per square foot total with site prep, installation, and finishing. Customized floor plans, designs, and finishes can add $10 to $150 per square foot or more to the total cost.

Modular Home Cost Per Square Foot Item Cost Per Square Foot Base + Delivery $50 – $100 Installation + Finishing + $30 – $60 Customizations + Additions + $10 – $150 Total $80 – $310

*As a home gets larger, the cost per square foot decreases due to construction efficiencies.

Modular Home Plans and Prices List

A 2-bedroom modular home plan costs $55,000 to $90,000, while a 4-bedroom house ranges from $70,000 to $150,000 for just the base unit without set-up, installation, and finishing. Compare modular homes prices and floor plans below to estimate the total cost.

Modular Home Prices and Floor Plans Floor Plan Square Feet Base Unit Total Installed Average 1-Story 1,400 – 1,700 $70,000 – $170,000 $110,000 – $275,000 Average 2-Story 1,500 – 2,000 $75,000 – $200,000 $120,000 – $320,000 2 Bedroom / 1 Bathroom 800 – 1,400 $40,000 – $140,000 $65,000 – $225,000 2 Bedroom / 2 Bathroom 1,000 – 1,500 $50,000 – $150,000 $80,000 – $240,000 3 Bedroom / 2 Bathroom 1,200 – 1,800 $60,000 – $180,000 $95,000 – $290,000 3 Bedroom / 3 Bathroom 1,400 – 2,500 $70,000 – $240,000 $115,000 – $365,000 4 Bedroom / 2 Bathroom 1,600 – 2,600 $80,000 – $250,000 $130,000 – $380,000 4 Bedroom / 3 Bathroom 1,700 – 3,000 $85,000 – $270,000 $135,000 – $430,000 5 Bedroom / 3 Bathroom 2,000 – 3,200 $100,000 – $290,000 $160,000 – $460,000

Custom Design Prefabricated Home Prices

Custom modular home prices range from $100 to $250 per square foot or between $200,000 and $500,000 when including all site-work, installation, and finishing. Most modular builders will customize their existing designs to change the finishes, floor plan, or the home’s size.

Custom Modular Home Prices Square Footage Base Model Cost Total Finished Cost 1 $100 – $250 $130 – $310 1,000 $100,000 – $250,000 $130,000 – $310,000 1,500 $150,000 – $375,000 $195,000 – $465,000 2,000 $200,000 – $500,000 $260,000 – $620,000 2,500 $250,000 – $625,000 $325,000 – $775,000

Some manufacturers have in-house designers and architects to create custom floor plans from scratch. With the ability to attach multiple sections together, the home can be as large as you wish.

Modular Duplex Cost Estimator

The average cost of a modular duplex is $100 to $200 per square foot for a complete turn-key installation, depending on the size and customizations required. An average 2,000-square foot duplex costs $200,000 to $350,000 total after site prep, assembly, and finishing.

A common prefab duplex floor plan is two-stories with 2 bedrooms and 1.5 bathrooms per tenant’s unit, for a total of 4 bedrooms and 4 bathrooms per building. Building a modular duplex may require a custom floorplan and contractors that are experienced in multi-family construction.

Small Modular Home Prices

Small modular homes (200 to 800 square feet) cost $20,000 to $80,000 on average for the prefab base unit, or $30,000 to $130,000 after site prep, installation, and finishing.

2-Story Manufactured Homes Prices

Two-story modular homes cost $70,000 to $140,000 on average for the base model and between $105,000 and $210,000 total for all site-work, assembly, and finishing. Most 2-story modular homes are between 1,500 and 2,000 square feet.

Modular Log Homes Prices

Modular log homes cost $50 to $100 per square foot on average, not including site prep, foundation, utility construction, finishings, or assembly, which adds $15 to $80 per square foot. An average 1,500 square foot log home costs $100,000 to $150,000 for just the base kit without installation.

Modular Log Homes Prices Square Feet Average Cost 200 – 600 $25,000 – $55,000 750 – 1,300 $50,000 – $120,000 1,300 – 1,700 $90,000 – $150,000 1,700 – 2,500 $105,000 – $225,000 2,500 – 3,500 $170,000 – $275,000

*Does not include site prep, foundation, utility construction, finishings, or assembly.

Log homes are 30 percent cheaper than traditional stick-built homes. With DIY construction experience, you can save money by ordering a log home kit you assemble yourself.

Prefab House Kits Prices

Prefab house kits cost $30 to $150 per square foot on average, depending on the size, number of bedrooms, quality, and if assembly is included. Expect to spend $90 per square foot or more to include assembly, a foundation, electrical and plumbing hook-up, water well, and a septic tank.

Prefab House Kits Prices Quality Cost Per Square Foot Mid-range $30 – $90 High-end $150 – $200

The manufacturer sends the home kit as a complete package of pieces for homeowners or contractors to assemble. Setting up a small cabin takes a few days, while installing homes with multiple rooms takes contractors a few weeks. Local building permits for manufactured home kits are required.

Read more: How Much To Spend on Rent [The Ideal Rent-to-Income Ratio] | Mint

Some cheaper prefab house kits may also require you to purchase roof shingles separately. For assembly service only, expect to pay at least 10 percent more.

Read more: Common Home Styles And Types Of Houses | Bankrate

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Average Cost To Build A Modular Home

In addition to the base cost of $75,000 to $150,000 for a 1,500 square-foot modular unit, you’ll spend $28,000 to $160,000 more or $30 to $60 per square foot for on-site preparation, installation, and finishing work to build a modular home. See the chart below for a modular home cost breakdown.

Modular Home Cost Estimator Item Average Cost Land Preparation $4,000 – $11,000 Foundation $6,000 – $20,000 Delivery $3,000 – $12,000 Taxes $5,000 – $15,000 Installation $10,000 – $50,000 Utility Construction $2,500 – $25,000 Permits & Fees $500 – $4,000 Additions (Garage, Deck) $5,000 – $50,000 Sub-Total $28,000 – $160,000 1,500 SF Modular Unit $75,000 – $150,000 Total $103,000 – $310,000

*Taxes and delivery is often included in modular unit price, and not counted in total.

Land & Site Prep Costs

The average cost to prepare the land and site for a manufactured home is $4,000 to $11,000. Land preparation prices vary depending on the amount of land clearing, excavation, and grading required to begin building.

Site Prep Cost For Manufactured Home Type Average Cost Land Survey Costs $350 – $1,000 Land Clearing Costs $1,350 – $3,900 Excavation $1,600 – $4,400+ Land grading cost $600 – $2,000 Total $3,900 – $11,300

Modular Home Foundation Cost

The average cost of building a foundation for a modular home is $6,000 to $20,000 or between $7 and $30 per square foot. Foundation prices depend on the type, location, and size of home. A crawl space starts at $6,000, while building a basement starts at $20,000.

Modular Home Foundation Cost Type Cost Per Square Foot Average Total Cost Basement $33 – $47 $20,000 – $29,000 Crawl Space $7 – $14 $6,300 – $16,300 Pier and Beam $7 – $11 $3,000 – $8,000 Stilts / Pilings $11 – $19 $12,000 – $30,000

Modular homes require the foundation to include space between the subfloor and the ground to accommodate electrical, heating and cooling, and plumbing connections. Therefore, the home cannot be placed on a monolithic concrete slab foundation.

  • Pier and beam foundations are the most popular and cheapest option and are typically set up in one day.
  • A crawl space is similar to pier and beam, but adds extra space under the house for storage.
  • A basement foundation increases the total living space and raise the property value, but are the most expensive.
  • Stilts and pilings are expensive and unconventional. They bring the house up one level and are used in hurricane-affected places and homes near water.

Cost To Deliver A Modular Home

The average cost to deliver a modular home is $5 to $10 per square foot or from $3,000 to $12,000 or more depending on the size, number of modules, and distance. Delivering a modular home includes transportation, an on-site crane, and a crew to set the modules onto the foundation. Delivery does not include “button-up” fees for finishing the home.

Cost To Move A Modular Home

The average cost to move an off-frame modular home is $5,000 to $15,000 depending on the size, permits, distance, and set-up complexity. Moving an on-frame manufactured home costs $1,000 to $8,000 for up to 50 miles, depending on if set-up services are included after relocating.

Cost To Move A Modular Home Distance Average Cost On-frame $1,000 – $8,000 Off-frame $5,000 – $15,000

Set-Up Cost To Install Prefab Home

A prefab home installation costs $5 to $35 per square foot or between $10,000 to $50,000. Prices depend on the size of the home and any exterior improvements. After the manufacturer delivers and sets the modules on its foundation, a contractor installs the home in a process called “buttoning up”.

Setting up a modular home includes:

  1. Connecting the modules together
  2. Installing external pieces and stairs
  3. Finishing interior work like drywall
  4. Completing carpentry work like trim
  5. Connecting the appliances
  6. Making any final door and window adjustments needed
  7. Exterior work, like siding, gutters, roof finishing
  8. Testing and inspection to confirm everything meets building codes

HVAC, Electrical & Plumbing Construction Costs

Most modular homes do not come with utility lines. Installing utility lines cost $2,500 to $25,000 for plumbing, electrical, and heating and cooling units. Prices depend on the complexity of the job, and charges are higher for rural properties that require a septic tank, water well, and solar power.

Utility Construction Costs Utility Average Cost New Electrical Panel Costs $850 – $3,000 Electrical Wiring Costs $2,000 – $9,000 Septic System Costs $3,500 – $10,000+ Sewer Line Install & Connection Costs $1,500 – $10,000+ Water Main Install Costs $500 – $2,500 Well Drilling Costs $3,000 – $15,000 Plumbing Installation Costs $2,300 – $5,200 Gas Line Installation Cost $500 – $2,000 HVAC Costs $5,000 – $11,000

Sales Tax & Hidden Costs

Sales tax on a modular home costs $5,000 to $15,000 on average or from 5 to 7 percent of the total cost of the home. Sales tax is often included in base price estimates and vary from state to state.

Other hidden costs that many buyers forget about is purchasing or leasing the land to build upon, permits, and design customization fees.

Modular Home Permits

Modular home permits cost $500 to $4,000 on average, depending on the state and size of the home. Licensed contractors will typically pull the permits for you upfront. Check with your city council to find out the local requirements. Permits that you may need include:

  • Building Permit
  • Mechanical Permits
  • Pre-plan review
  • Certificate of occupancy
  • Driveway construction permit

Basements, Garages, Decks & Other Additions

Additions such as a garage, basement, or deck add to your overall cost. Prices depend on the size and whether it’s attached to the home or not.

Modular Home Addition Costs Upgrade Average Cost Garage Addition Costs $10,000 – $25,000 Deck Costs $4,000 – $10,000 Basement Foundation Costs $25,000 – $80,000 Basement Finishing Costs $22,000 – $46,000 Driveway Costs $600 – $8,000 Fence Costs $1,500 – $3,000 Landscaping Costs $3,000 – $16,000 Shed Costs $1,500 – $5,000

Adding A Modular Addition To Existing Home Cost

A modular addition costs $65 to $200 per square foot, depending on the materials, size, and extension complexity. An average modular room addition costs between $11,000 and $20,000, or 10 to 15 percent less than site-built additions.

Modular Addition To Existing Home Cost Room Average Cost Includes Bedroom / Office $11,000 – $20,000 ~144 SF with new foundation and roof Bathroom Addition $15,000 – $40,000 Toilet, shower, tub, sink, finishes Guest House / In-law Suite $45,000 – $135,000 ~600 – 750 SF, mid-sized bath, 3 windows, concrete slab, and more Second Floor $100,000 – $300,000 ~1,200 SF of bedrooms, bathrooms, windows, staircase.

Modular additions take 1 to 2 months to finish, compared to 4 months for regular site-built additions.

Design & Size Differences By Region

Prices tend to be about the same nationwide, but there may be regional design differences to match the local building codes and the style of your neighborhood. Bigger cities typically have more models on display and a larger selection of modular home floor plans.

More extended units are more difficult to transport. On the East Coast, the maximum length is 60 to 70 feet, while it can be longer in the West and Midwest. In urban areas, the maximum ceiling height is 10 feet to allow trucks to drive under overpasses with a 14-foot clearance.

Read more: Common Home Styles And Types Of Houses | Bankrate

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Prefab Homes Prices

Prefab homes cost $30 to $100 per square foot on average for a base model without the land, finishes, site work, or customizations. Prefabricated houses are cheaper when buying a kit house or shipping-container home. Modular construction costs more, but also appreciates in value the most.

Prefab House Cost Per Square Foot Type Size (SF) Cost Per Square Foot Total Cost Manufactured 500 – 1,800 $30 – $60 $30,000 – $75,000 Modular 800 – 2,800 $50 – $100 $75,000 – $150,000 Tiny House 100 – 400 $200 – $250 $20,000 – $100,000 Shipping Container 100 – 720 $125 – $400 $7,000 – $120,000 Kit House 100 – 800 $30 – $65 $5,000 – $115,000

*Base unit prices only. No land, foundation, finishing, customization, and site work is included.

Modular vs. Manufactured Homes Cost

Manufactured homes cost $30 to $60 per square foot compared to modular home construction at $50 to $100 per square foot. Modular homes are customizable and typically placed on a permanent foundation. Manufactured homes are built to HUD standard, but mounted on a steel frame.

Modular vs. Manufactured Cost Type Modular Manufactured Cost Per Square Foot (Unit Only) $50 to $100 $30 to $60 Average Sales Price (Unit Only) $75,000 to $150,000 $30,000 to $75,000 Building Standards Local, State & Regional HUD Code Typical Size (SF) 800 to 2,800 500 to 1,200 Construction Time 1 to 4 Months 1 to 4 Weeks Transportation Modules are moved on trucks Transported on its own wheels Mobility Permanent and expensive to move Cheaper and easier to move Stories 1 – 2 stories or more 1 story only Foundation Permanent Mobile / Not Permanent / Steel Chassis Appreciation Grows over time Loses Value

  • Modular – This factory-built in separate modules that are delivered, connected, and installed on-site. Follows the same building codes as regular site-built homes.
  • Manufactured – Factory-constructed homes built to HUD code requirements. Often referred to as a “mobile home.” Banks don’t consider homes without a permanent foundation as “real estate.”

Read more: Common Home Styles And Types Of Houses | Bankrate

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Pre-Built Home Prices By Brand

Pre-built homes range in price from $60 to $275 per square foot, depending on the brand, size, floor plan, and customizations selected. Here are the average costs of the top brands.

Pre-Built Home Prices By Brand Brand Cost Per Square Foot Area Served Floor Plans Sizes (SF) Champion $90 – $140 Nationwide 2,000+ 400 – 3,200 Clayton $70 – $200 Nationwide 100+ 1,000 – 2,280 Pratt $65 – $100 South 60+ 1,600 – 3,000 Kent $70 – $100 Canada, Maine 100+ 600 – 2,500 Huntington $110 – $275 Northeast 100+ 620 – 4,600 Heckaman $60 – $100 Midwest, South 50+ 860 – 2,800 SICA $60 – $80+ NJ 2,000+ 1,200 – 3,900 Triton / Ritz-Craft $90 – $200+ NY 200+ 875 – 4,100 Bonna Villa $80 – $120 West, Midwest 80+ 1,100 – 2,700 Palm Harbor $80 – $150 Nationwide 100+ 360 – 3,600 Royal Homes $100 – $200 Canada 90+ 820 – 3,900 Express $110 – $128 Nationwide 3,000+ 530 – 9,900 Tidewater $125 – $170 Southeast 110+ 825 – 5,700

Champion Modular Homes Prices

Champion Modular Homes prices range from $90 to $140 per square foot and are typically built and delivered within 2 months. Champion offers over 2,000 pre-designed home plans ranging from 400 to 2,400 square feet that are available nationwide.

Champion retailers can assist with getting permits, preparing the land, installing a foundation, planning utility hook-ups, and all other site work. Champion Modular, Inc. operates under various brands and retailers such as Statewide Homes, Seacoast, and All American Homes.

Clayton Modular Homes Prices

Clayton Modular Homes prices range from $70 to $200 per square foot or between $30,000 and $200,000 depending on the size, model, and delivery distance. Clayton operates nationwide and offers more than 175 floor plans ranging from 1,000 to 2,280 square feet.

Clayton Homes typically includes delivery, installation, and finishes in the final cost. They allow for minor modifications for an additional charge, such as adding a bedroom, installing a bathtub, and modifying kitchen cabinetry.

Kent Modular Home Prices

Kent Modular Home prices range from $70 to $100 per square foot or between $42,000 and $250,000. This price includes delivery, set-up, and utility connections, but excludes total site preparation fees. Kent offers more than 100 customizable floor plans ranging from 600 to 2,500 square feet.

Kent Homes also come with a full-coverage warranty on their materials and construction for the first year that you own the home.

Pratt Modular Homes Prices

Pratt Modular Homes prices range from $65 to $100 per square foot or between $39,900 to $218,400, not including the finishing costs on-site. Pratt offers 60+ standard floor plans ranging from 1,500 to 3,000 square feet, and provides a 7-year warranty on appliances and structure.

Huntington Homes Cost

Huntington Homes cost $110 to $275 per square foot include delivery and placement, but finishing may add additional charges. Huntington Homes offers 100+ floor plans ranging from 624 to 4,632 square feet and provides turn-key installation services in addition to selling to builders.

Read more: Common Home Styles And Types Of Houses | Bankrate

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Pros and Cons of Modular Homes

Although modular homes are cheaper and take less time to build than traditional site-built homes, the biggest downsides are you often have to pay more upfront, and it can take longer to resell.

Advantages of Modular Homes

  • Move-in time takes 2 to 6 months, which is 30 to 60 percent faster than site-built homes.
  • Modular homes cost 10 to 20 percent less than stick-built homes
  • Modular homes are more energy-efficient than stick-built homes and have lower monthly expenses.
  • Modular homes attached to a permanent foundation are the same or higher-quality than a site-built home, and lasts just as long.
  • Financing options are available directly through the manufacturer.
  • Modular homes have higher resale values than a mobile home.
  • Modular homes are highly customizable, and pre-designed plans are also available.

Disadvantages of Modular Homes

Consider these downsides before buying a modular home:

  1. Some locations have restrictions about placing a modular home.
  2. You often need to own or buy a piece of land before installing the modular home.
  3. It can take longer to resell since many new homebuyers don’t understand modular homes are worth more than mobile homes or trailers.
  4. Banks tend to offer fewer financing options compared to site-built homes. Modular homes attached to a permanent foundation qualify for more loans, but on-frame modular homes are categorized as mobile homes and may require alternative lending sources.
  5. Some states classify prefabricated homes as “mobile homes,” which leads to more taxes and less or no mortgage options.
  6. The down payment for modular homes is typically higher than the 20 percent that’s standard for site-built homes.
  7. Certain design limitations exist since contractors must move the modules onto a truck for delivery.
  8. You need plenty of space on your property for a crane and semi-trucks to deliver and install your home module sections.

Cost of Modular Homes vs. Building Stick-Built

Modular homes cost 10 to 20 percent less than stick-built houses and are more energy-efficient, which saves on monthly expenses. The average cost to build a stick-built house is $100 to $200 per square foot. Modular home prices range from $80 to $160 per square foot on average.

Modular Homes vs. Stick Built Cost Factors Modular Stick-Built Standard Build (Per SF) $80 to $160 $100 to $200 Custom Build (Per SF) $130 to $250 $200 to $550 Construction Time 3 to 6 Months 6 to 12 Months Customization Maintenance

Read more: Common Home Styles And Types Of Houses | Bankrate

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Frequently Asked Questions

What Is A Modular Home?

A modular home consists of sections or “modules” constructed in a factory, then delivered and set-up on-site. Modular homes come in pre-designed plans or can be customized to any shape or size. Modular homes follow the same building codes as site-built homes, but are stronger and more energy-efficient. Plus, it looks the same as a regular house.

Types of Modular Homes

Read more: How Much Does It Cost To Build A Tiny House? – Forbes Advisor

Modular homes can either be on-frame or off-frame with differences in price, classification, and long-term value.

  • Off-frame – The most-common, highest-quality modular homes are lifted off of their transport frame and placed onto a permanent foundation, which makes them more expensive and difficult to relocate. These homes can appreciate in value like site-built homes since they have lasting foundations, and the buyers also own the land.
  • On-frame – These modular homes remain on a steel-frame chassis after delivery. Since the transport frame stays in place and they aren’t permanently attached to a foundation, many lenders and appraisers classify them as mobile homes. They’re more affordable because they don’t need a permanent foundation, and relocating them is easier.

How Are Modular Homes Built?

Modular home manufacturers build 80 to 90 percent of the home’s sections or modules in a factory. Factories construct the walls, install drywall, appliances, and roof framing, paint, and inspect for quality-control. The factory work happens simultaneously with on-site work to prepare the foundation.

Once the modules are delivered to the construction site, a crane lifts them into place over a permanent foundation. Contractors assemble the sections, connect the utility lines, and attach each piece to the foundation. Sometimes, the home is kept on the steel frame it was delivered on as part of the foundation.

Contractors complete the home finishings and conduct minimal inspections. Now the home is ready to move into.

How Long Does It Take To Build A Modular Home?

Building a modular home is 30% faster than a site-built house and takes 2 to 6 months for the construction, delivery, and assembly. The time depends on the size, customizations, and number of modules, and workers. The set-up time on-site takes only 4 to 6 weeks with a dozen workers.

Can You Put A Modular Home on a Slab?

Modular homes are typically built on a basement or pier-and-beam foundation with a crawl space. A concrete slab lacks the strength to support a modular home. The modular home’s weight causes cracking and settling on slabs, which leads to significant long-term damage.

Modular homes typically need space under the house for the HVAC, electrical, and plumbing connections during installation. If you buy an on-frame modular home, a permanent foundation is optional, which makes it cheaper. However, lenders may classify it as a mobile home, which may restrict your financing options.

Can Modular Homes Have Basements?

Modular homes can be built on a basement foundation or a pier and beam system with a crawl space. Adding a basement to a modular home costs $20,000 to $29,000 on average, depending on the size. Costs include design, permits, excavation, construction, and finishing costs.

How Long Do Modular Homes Last?

Modular homes last for as many years or longer than regular stick-built homes. Modular homes use higher-quality materials and construction, which means lower maintenance costs. Plus, their safer, undergo inspections to ensure quality control, and look the same as traditionally constructed homes.

Are Modular Homes Safe?

Modular homes are safe, permanent structures that meet building code standards and regulations like site-built homes. Modular homes use 15 to 20 percent more wood and undergo strict inspection and testing before delivery. That makes them stronger and safer than traditionally built homes.

Modular buildings are fixed to a solid basement foundation and are safer when dealing with flooding and hurricanes. Modular homes can withstand hurricane winds of 175-mph with less damage than traditional site-built houses and are recommended by FEMA.

Are Modular Homes A Good Investment?

Modular homes are a good investment because they increase in value over time, like any other property. Plus, they’re more energy-efficient and last as long as site-built homes. The highest appreciation rates are for modular homes with a permanent foundation that includes the land and building ownership.

Are Modular Homes Cheaper?

Modular homes are typically 10 to 20 percent cheaper than site-built homes and use the same quality materials. Modular-building saves on construction costs and all inspections are done in the factory. Plus, modular homes are more energy-efficient, which saves substantially on monthly expenses.

Can You Get A Loan For A Modular Home?

To get a modular home loan, the top financing options are USDA construction loans, FHA loans, and VA loans that can later be converted to a mortgage. Check with your local bank for available options. Also, reputable modular home builders will refer you to a recommended lender.

Read more: Common Home Styles And Types Of Houses | Bankrate

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Hiring a Modular Home Builder

When hiring a modular home installer or general contractor, make sure they have prior experience since it’s a more specialized type of construction. Licensed general contractors will:

  • Get permits before the project starts and follow building codes.
  • Take on all project-supervision responsibilities.
  • Recognize potential problems before they become an issue.
  • Hire and manage subcontractors for specific tasks.

Contractors will manage the site preparation, which includes clearing land, handling utility hook-ups, and foundation work. Then, they’ll attach the modular home sections, and coordinate the finishings. Finally, they’ll install extras like a driveway, porch, or garage.

Getting Modular Home Setup Quotes

Before hiring a contractor:

  • Get at least three in-person estimates to compare.
  • Ask for recommendations from family, friends, and neighbors.
  • Read reviews and check out their previous work on HomeGuide, Google, and the Better Business Bureau (BBB).
  • Pick specialized contractors over general ones if it’s a specific project.
  • Ask for a full itemized contract in writing in case of a dispute.
  • Avoid making large payments upfront. Never pay in full or in cash, and come up with a payment schedule for work completed.

Questions To Ask Modular Home Builders

  1. Can I see a portfolio of your prior modular-home experience?
  2. Are you licensed, insured, and bonded?
  3. Who’s the project manager, and will you use subcontractors?
  4. What hours do you and your crew work?
  5. What permits do I need, and will you obtain them?
  6. What does your warranty policy include?
  7. What’s your payment schedule?

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