Many homeowners dream of building a custom-built home but may not have the time to build or the finances to do so. A great alternative to building a custom home is to purchase a modular home. They are cost-effective and can save you a lot of time.

What is a Modular Home?

A modular home is one that is built indoors in a factory-like setting. The finished products are then transported to their new location where a builder will assemble them. A modular home is not a mobile home but one that is built off-site. They are also known as prefab, system-built, or factory-built.

The major difference between modular homes and custom-built ones is that modulars are built inside and can be completed in a few weeks rather than months. They do not have to worry about weather or natural disaster delays. Modular homes must conform to specific rules, guidelines, and building codes that surpass those of on-site homes. If you are considering a modular home, make sure you shop around as not all companies are like. Do your research before committing to a specific home to ensure you are getting everything you want.

Modular Home Facts

If you have never heard of modular homes, here are the facts you should know:

  • Modular homes are transported to the home site and built on a permanent foundation.
  • These homes appraise the same as on-site built homes. Their value does not depreciate.
  • They can be customized and vary in style and size.
  • Taxes on modular homes are the same as site-built homes.
  • Home loans for modular homes are the same as any other home loan.
  • They can be built to withstand up to 173-mph winds.
  • They can be built for accessible living and designed for future conveniences.
  • Not all modular homes look alike. They do not have design limitations and you can create any style of modular home you want.

Pros and Cons of Modular Homes

There are many advantages of modular homes, but there are also some disadvantages that you should be aware of.


  • More affordable to build.
  • Shorter build time.
  • No home inspections needed. These are done at the factory.
  • Customizable.
  • Built to be more energy efficient.
  • No weather-related building delays.


  • You will need to purchase land first.
  • Cannot be built on subdivisions.
  • You will need to build a foundation, electrical hookups, plumbing, and sewage on site.
  • You may need to get a construction loan first to finance the modular home which is only available for a year.
  • Once the home is attached to the foundation, you will have to convert your construction loan into a longer-term mortgage.

In Conclusion

Modular homes are a great option for homeowners who want to build their dream home without the hassle of traditional construction. Modular homes are usually built quicker and for less money. You will work with a manufacturer to design your home, they will build it at their factory, transport it to your location, and anchor it to the permanent foundation.

The AnnieMac Promise

AnnieMac Home Mortgage strives to offer the best service for our borrowers and are here to help you achieve your goal of homeownership.