By Emma Diehl February 21, 2022 5 read minute
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Are you looking for a move-in ready home? A modular home may be the way to go, but there are reasons to be hesitant.
By the way, it's easy to confuse modular homes with manufactured homes. Modular home components are factory designed and assembled on a permanent foundation; Homes must meet all building codes. Manufactured homes (called mobile homes before 1976) are assembled on a wheeled chassis and transported to the place of residence. They will be built to Department of Housing and Urban Development standards.
OK. So, are you interested in building a modular home? Please read before buying a pre-made seat.
How are modular homes built?
One of the biggest differences with a traditional house is the waykit housesThey are built. Modular homes consist of modules that are assembled at the factory and delivered to your place of residence in one or more trips.
The benefit of building modular home components in a factory is the controlled environment. Because parts are assembled under ideal conditions (perfect temperature, humidity, etc.), buyers can generally expect consistent, high-quality workmanship.
The problems of modular houses
While they may offer quality, modular homes can have drawbacks. Here are 10 common problems with modular homes.
1. Incorporation costs
One disadvantage of modular homes is foundation leakage. Although most of the home is assembled off-site, modular home owners still need to lay the foundation for the property. Building a foundation can cost anywhere from $5,000 to almost $20,000 on average.
2. Payment can be requested in full
One of the problems with manufactured homes is financing. Equal toMobile Home Financing, modular homes have fewer credit options because a home doesn't exist yet.
Most modular home buyers will apply for a new construction loan, which may require good credit or is relatively uncommon for an FHA or VA home loan. Given these issues, a modular home buyer may not be able to make it.qualify as a first time homebuyeror other loan aid.
In that case, the buyer may have to pay for the house in full. Even though the average modular home costs at least 15% less than its exact embroidered counterpart, that can be prohibitively expensive when paid for in full.
3. Difficult to guarantee quality
One of the dangers of modular homes can be quality control. Some parts of the house can be built in an ideal factory environment, but some parts may be damaged in transit.
Also, because it's being built off-site, buyers don't have the opportunity to inspect the build, which means defects may not be discovered until after assembly.
4. Additional costs
Buying a home right away sounds tempting, but prices can be deceiving. One of the problems with manufactured homes is the additional costs involved. Buyers pay not only for the house, but also:
• Assembly of foundations
• Electricity, plumbing and plumbing
These numbers can be hard to predict, but they can result in unexpected costs beyond the price of the modular home.
5. Difficult to make changes
Buying a house from a catalog sounds exciting, but one of the disadvantages of modular homes is the standardized design. Depending on the manufacturer, the buyer may not be able to select custom finishes or other modifications. Modular homes don't leave much room for creativity.
6. Personalization issues
While buyers may have several floor plans to choose from, one downside to modular homes is that they can never be fully customized. If a buyer's dream home includes a screened-in porch or loft, this may not be an option when building your modular home.
7. Difficult to finance
As discussed above, when modular home buyers want to finance their purchase, they have limited options.
Equal tofinance a tiny house, they can potentially finance the country.
For some homebuyers, home loan terms may be more difficult to qualify for and the terms may be less favorable than a traditional mortgage.
8. Find the country
Disadvantages of modular homes include land restrictions. Of course, the cost of a property varies depending on where it is purchased. Also, not all lots are zoned for modular homes. It may be necessary to do extensive research to find the right country.
9. Prejudice against modular homes
There may be great interest in building modular homes, but one of the dangers of modular homes is bias. While modern modular homes may be indistinguishable from traditional homes, for some people they carry a stigma. This can lead to problems getting building permits in a desired neighborhood or a general misconception about the home.
10. Resale issues
Perhaps the biggest drawback to modular homes is the potential struggle for resale. Real estate agents and potential buyers alike may gravitate towards modular homes, even if it is a high-end building, which can result in a lower resale value than a traditional home of similar construction.
First-time homebuyers can
prequalify for a SoFi home loan,
with only a 3% drop.
What to look for when choosing a modular home to buy
If you're looking to buy a modular home, here are a few things to keep in mind:
•house style.Modular homes come in a variety of styles, from modern houses to log houses. It can be important for buyers to work with a modular home builder that suits their tastes.
•manufacturer location.The cost of moving a modular home can be high. For the budget-conscious modular home buyer, it can be important to work with a manufacturer close to the home's final destination.
•Custom builds.Some modular home builders may offer more customizable options, including floor plans and finishes.
•Timeline.Some modular homes are built relatively quickly, while other manufacturers may have a month-long backorder.
Discover mortgage solutions with SoFi
There may be common problems with modular homes, but no home is without its drawbacks. A modular home can be perfect for the budget-conscious homebuyer with environmental and time-saving concerns.
For some buyers, the advantages of modular homes outweigh the disadvantages. If so, consider arefinance take outor a royalty-free, unsecured personal loan from SoFi to build your fabulous manufactured home.
And SoFi has partnered with SpringEQ to offer homeowners a way to unlock their home's value.
With helpful tools, including amortgage calculatorit's aHome Loan Servicing Center, SoFi can help simplify the home buying process.
Are modular homes dangerous?
The dangers of modular homes are minimal. As long as the modular home assembly complies with local building codes, modular homes are just as safe as a traditionally built home.
Are Modular Homes Falling in Value?
Modular homes are valued and depreciated like traditional buildings.
Where can modular homes be financed?
Options from different lenders include a construction loan, a home loan or line of credit, a cash-out refinance, and a personal loan.
How long does a modular home last?
With proper maintenance and quality materials, a modular home should last as long as or longer than any conventionally built home. Some of the first modular homes built in the early 1900's are still in existence today.
Photo credit: iStock/turk_stock_photographer
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