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Modular Homes Make Sense
Factory-built homes offer all the amenities of traditionally built homes, often at reduced cost and increased quality.
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Modular homes are like the hybrid car of the house-building industry. They save money, they make sense, but they haven''t caught on yet. General misconceptions keep many from considering going modular, and the confusion between modular homes and manufactured (mobile) homes has led to regulations and restrictions being placed by towns that have new home builders scared into going the traditional route. But the word is getting out. It turns out modular homes are in many ways superior to stick-built homes, and, once assembled, cannot be distinguished from their traditionally built counterpart.
What is a Modular Home?
"There is no such thing as a modular home," states Dave Boniello, Vice President of Sales and Marketing at Simplex Industries, a Pennsylvania-based modular home manufacturer. It is a matter of the literal meaning of the word modular, which insinuates a standardized unit or repeatedly used structural component. "The modular homes industry uses a system-built technology," Boniello explains. "The homes are built in a factory in a controlled environment. They are built in a system."

Simply put, a modular home is one that is built in a factory, usually in assembly-line fashion, and then transported to a site in large units. These units are then lifted from the transport by crane and rested on a pre-built foundation and fastened together. The entire process takes a fraction of the time it takes to build a house on-site, and the finished product can cost a good deal less.
Customize, Customize, Customize
"There is nothing you cannot do with a modular home." So says Chad Harvey, the Assistant Director of Government Affairs with the Modular Building Systems Association. Harvey, who splits his time between apprising Association members of any new industry regulations and seeking new ways to educate the public on the benefits of modular homes, is a firm believer in the industry he represents. "Anything you want in a modular home, you can have."

Many people incorrectly equate modular homes with manufactured or mobile homes. To these people a modular home is a one-size-fits-all boxy construct made of low-end materials and generic products. "The biggest public misconception on modular homes is that you can only build what is in the brochure," Boniello explains. The ability to fully customize is just one of many distinctions between modular and manufactured housing that Boniello wants the public to be clear on.

Modular homes today can be built to any specification and any size. From a simple one-and-a-half split-level ranch to a grand, three-bath, 3000+ square foot two story — the industry has it covered. And any amenity one can think of can be included. Think whirlpool bath in the master suite, granite countertops in the kitchen, or even structured wiring in every room. Although most modular home companies use the same product for each component of each house on the assembly line, it is still possible to substitute another brand to suit a homeowner''sdesires.
The Process of Building a Modular Home
Once a potential homeowner

First a homeowner must select a modular home manufacturer. The majority of manufacturers are located on the East Coast, and some are very specific as to what states they will ship their homes. Since it is usually necessary to include a local builder or developer in the process it may be helpful to consult with this party for advice on manufacturers. Many local developers have established relationships with certain manufacturers, so this is a good place to start.

After a local developer and manufacturer have been decided on, the homeowner must choose a floor plan and select from a wide range of options. When these decisions have been made and an initial contract is signed, the manufacturer''s engineering staff overlooks the plans and the factory can go to work on constructing the home.

Once the manufacturer has begun building the home in the factory, it is usually just a matter of weeks before the units are ready for transport. As the work in the factory is taking place, on-site construction of the home''s foundation by the local builder is being done to ready the site for the arrival of the home. "Because the foundation is being laid on-site as the home is being built in the factory, the overall construction time is dramatically reduced," says Harvey.

The modular home is then shipped to the site on flatbed trucks. The units are then placed by crane onto the foundation, and the entire home is fastened together. At this point, the amount of time until the homeowner can move in depends on a number of things. "Some customers want to put on custom trims, or finish the basement," says Boniello. There are plumbing and electrical tie-ins to address as well. Completion time after the units have been placed can be anywhere from a couple weeks for simple designs to 90 days for complex custom jobs. The average completion time from initial order to move-in is roughly three months, compared to an average completion time of about six months to a year for a site-built home.
has decided to go with a modular home, there are a few steps to take that are relatively consistent regardless of which modular home building company one is working with.
Built-in Strengths
While this may seem a matter of opinion, there are a few areas in which modular homes have stick-built homes at-large beat. "Modular homes," Harvey declares, "are built with 20 to 30 percent more materials than typical stick-built homes because they have to withstand the transport from the factory to the site." In a FEMA (Federal Emergency Management Agency) study following the Hurricane Andrew in 1992, it was found that wood-frame modular homes in hard-hit Dade County, Florida, stood up to the devastating winds better than stick-built homes. The finding states: "Overall, relatively minimal structural damage was noted in modular housing…" The report also points out that the construction method of modular homes "provided an inherently rigid system that performed much better than conventional residential framing." The use of more materials also equals greater energy efficiency — another money-saver.

Controlling Costs
Modular homes are built in a factory. This is a controlled environment that is unaffected by variables that plague site-built homes, such as poor weather and theft or vandalism. Not only does this cut down on construction time (which saves money) it can lead to a better product. A quality modular home is assembled using top-shelf products that can be purchased by the modular home manufacturer from suppliers in large quantities at reduced costs. "We''re not ashamed of the products we use," says Boniello. "We can guarantee brand names. Site-builders use what''s on-hand…what''s available. They don''t have a Purchasing Department who can source products like we can."

Modular homes are built to the state and local regulations of wherever the home is to be transported. In order to assure that each home passes inspection, every manufacturer''s factory has third-party inspection. This means every step of the home''s construction is reviewed and checked by inspectors who are up-to-date on the state and local codes of the home''s final destination. "Our homes do not leave the factory until they meet or exceed state code," says Boniello.

Purchasing a modular home can save money. While it is impossible to affix an exact figure, Boniello suggests savings can be anywhere from 5 to 25 percent over building traditionally. Right now the modular home industry accounts for 7 to 8 percent of all new home sales. But that number is on the increase as the public becomes more educated on the superior qualities of the modular home. "Modular housing is coming into its own," Harvey summarizes. "The South and West coasts are largely untapped frontiers [for the industry]. There is no reason why sales won''t continue to increase. The future outlook is very strong."
 

 
Have a question about building a modular home? We've probably already been asked it and answered it. Here is a collection of the most common questions consumers have about modular homes and buildings. If you have a question that is not on this list feel free to contact us. We take pleasure in helping others avoid costly mistakes and clarifying the large amount of confusion there is out there about modular homes.


 
 
Is a modular home or modular office lower quality than traditional buildings?
No, modular buildings use the same materials as site-built homes. They actually have better quality since the pre-fabricated buildings are built in sections inside the controlled environment of a factory. Then shipped by truck to the building site where they are assembled by local builders who understand the local environment. All modular buildings meet or exceed the same local building codes as a regular home (site-built).

What does a modular home look like?
A modular home's appearance is the same as any other house. There are countless numbers of designs to choose from and additional site add-ons so your modular home will look however you want it to look. Modular buildings are different in that they use a more efficient building process. They are the same in that they use the same materials and design types as regular homes. A modular home is different than a mobile home.

What are the differences between manufactured and modular homes?
Manufactured homes are also known as mobile homes. They are built on a non-removable steel chassis (about the size of a flatbed truck) and must pass the federal HUD building code. Modular homes are constructed according to the state/local building codes. Modular homes can be any shape or size. They can be multi-leveled and can have basements. Modular homes are built in large segments at an off-site factory and then constructed together at your building site.

Is there a difference in the construction between modular homes and site-built homes?
There is almost no difference in the construction process for a modular home and a site-built home. The main difference is that modular buildings are constructed in a controlled environment, and are not affected by the weather and other environmental elements. Modular homes are delivered to the site in modules and then put together on site; thus saving months on construction time.

How does a modular home save on cost and time?
There are several savings with modular homes.
1.       Since modular home builders fabricate all the homes at one factory they are able to buy material in bulk quantities at reduced costs.
2.       Fabrication is done in a climate controlled factory so no time is wasted on weather delays which means lower labor costs.
3.       Since the fabrication is done in a central factory they can reduce material waste and the workers are more experienced at their specific tasks so they can complete them faster.
4.       There are no vandalism costs since the fabricated pieces are secure in the factory until they are assembled.
5.       Since the modular building can be completed faster due to the concurrent building process, there are savings on reduced loan interest.

 
 
Is finding a mortgage for a modular home hard?
It is the same as finding financing for a regular new home. Financial companies treat modular buildings and site-built aka regular homes the same way. The appraisal is the same process for both and insurance companies also treat them the same way. 

How long does it take to build a modular home?
This depends on the size of the modular home and the complexity. Since all fabrication is performed in a climate controlled factory, there are no weather delays and work is done more efficiently (don't you work better when it is not too cold or too hot?). Also since the fabrication is done off-site, it can be done at the same time the building site is being prepared, saving even more time. As modules are finished they are shipped to a building site where they are assembled together on the foundation. The total building process can take anywhere from 1 to 6 months.

 
Modular Building Process Timeline
Modular buildings are similar to on-site building in appearance and performance. However one big advantage of modular buildings is the shortened timeline which delivers cost savings. This is because the pieces of the modular home are constructed in a climate controlled workspace which removes the possibility of weather delays. This working environment increases efficiency allowing the structure to be built faster and costing less. Also by having a separate workspace from the building site it allows for concurrent site preparation and building. In other words, while your building site is being prepared (ground leveled, foundation poured etc.) your walls and roofs are already being built in the climate controlled workspace. Listed below is a general timeline that will take 90 to 180 days for the entire project. Each individual modular home will be different.
  • Financing Part I
Like most Americans you will need some financing for you building project. Your local banks and mortgage brokers can provide you with the construction loan. Before you talk to anyone about your finances make sure you are educated about the basics so you can ask smart questions. Look up your credit report (which is free to do once a year) and make sure there are no errors. Then look up the current mortgage loan rates. This will help you to estimate how much you can spend on your new home. Then start contacting banks and mortgage brokers to determine which will offer you the best rate.
  • Decide what you want
What type of house do you want? Have you found your land? How many floors, bedrooms, bathrooms and how much square feet of space would you like? Where would you like to build this?
  • Architectural Plans
Once you decide what you want, your next step is to choose the plan that fits your needs. Choose your add-ons to the basic plans. Based on your selection, the builder will prepare house plans and architectural drawings in about 4-8 weeks.
  • Construction Costs
Once you choose the house plan, the cost of the local builder can be determined. This can take a few weeks to determine the costs and guarantee the scheduling with the local builders. You will need this information for your construction loan.
  • Financing Part II
Once the costs are completed and you have blueprints you can go back to your lender that you had the preliminary home financing meeting with. The lender normally will require a copy of the final blueprint drawings and written construction bids before they will approve the loan.
  • Building Permits
Once you have the necessary financing, you then need to work with your modular home builder to apply for any necessary building permits that are required by the state or local governments. Generally this will take 3-6 weeks for normal building sites. If you are in a historic area, environmentally sensitive or other protected zone it can take considerably longer.
  • Site Preparation/Construction
Modular buildings enable you to experience a great time and cost savings by allowing your construction to commence while your site is being prepared. While your foundation is being created the modular building is being fabricated at an off-site location. It is then shipped to you in sections where it is assembled by the local builders and constructed on top of your foundation. This step will take 1 to 3 months depending on the size and complexity of your modular home.

 

 

 

Tax Credits!!

California State Credit
Last updated: 06/27/2009
We will update this information frequently. Please check this page often.
The state has filled their tax credit allocation at this point. They may vote to allocate additional monies to this program. We will keep you updated.
Federal Tax Credit
President Obama Signs Legislation that Extends and Revises Temporary Tax Credit
 
On February 17, 2009, President Obama signed into law legislation that revises the temporary tax credit included in The Home Recovery Act of2008 – H.R. 3221, Section 36.  These revisions increase the maximum tax credit and extend the time frame for homebuyers to purchase a home.  First-time home buyers who purchase a home between January 1 and December 1, 2009, may qualify for up to an $8,000 tax credit that does not have to be paid back as long as you own the home for three years.  For further information, Contact a Tax professional.
We Now Sell Park Models!

What is a Park Model?
The Park Models we sell are basically manufactured homes that have a living space of less than 400 square feet.  Park models are classified as a travel trailer (RV) which is regulated by the Dept of Transportation and the state departments of motor vehicles (DMV).  The technical difference between a park model and a travel trailer is the lack of any holding tanks on the park model. They are intended to be placed solely at a site with hook-ups for sewer and water.

Is a Park Model right for you?
Park models are increasing in popularity for seasonal resort RV communities and vacation properties.  Although they can be a quick and affordable housing solution for many property owners, and skip a number of permits and fees, you should always check with your county or city as to the codes and standards for the use of an RV.
Park Models are cottages with peaked roofs that sit on a chassis and are typically placed on rented, leased or purchased sites in campgrounds or RV resorts and used as weekend retreats or vacation cottages. Park models can also be placed in RV sections of mobile home parks or on private property and used as a part-time residence, subject to local zoning ordinances.
Typically upscale in appearance, park models are available in many styles with residential cabinets and full size appliances. Park models offer many options including bay windows and lofts.
Why Buy a Park Model?
Vacation Homes - Wake up in your favorite vacation spot any time of year, with no reservations required. You can enjoy it even more knowing you drove your economical car to get there.
Income Properties - Provide seasonal vacation rental homes. Seasonal rentals allow you to receive a monthly income and still enjoy your home when you want to.
Guest Homes - Park Models are a perfect option for guest housing. They offer all the needed facilities for long or short term visitors.
Why are Park Models gaining in popularity?
Rising fuel costs may be partly responsible for increased park model demand, but other factors are also the relative affordability of park models compared to RV's, as well as the increasing good looks of park model units.
Manufactured homes of the 21st century are competing with the traditional site built homes.
 
Manufactured homes of today meet and sometimes exceed the quality and amenities of the typical tract home. Manufactured homes come in all different shapes and sizes. There are manufacturers out there that are building two story homes that give you more square footage on small lots, log cabins, snow loads that allow you to build in the sierras, and they can be found from one section to 8 sections and from 413 square feet to over 3000 square feet. You can customize a manufactured home to meet your needs (in most cases) manufactured homes are no longer a tin sided box.
 
Manufactured homes are built in a controlled environment, and each employee has there job they do on each home. Because the employees complete a specific job on each home they become very proficient in that job, and that cuts down on the cost to construct by a substantial amount.
 
You can build a manufactured home (turn key and ready to move into) for about $85.00 per square foot, as to where the same quality site built home will cost about $175.00 per square foot to build.
 
Manufactured homes are a key source of affordable housing. There are many subdivisions all over that are manufactured homes, and you may not even know it. Manufactured homes can be ordered stucco ready, you build it attach a garage and then stucco the whole thing, and no one would ever know it was a manufactured home. If you live in the forest you can order a manufactured home with cedar or log exterior, and again it is hard to tell it is a manufactured home. My home has a covered porch, decking, attached garage and granite counter tops, and an appraiser agued with me for 20 minutes because he thought I was wrong about the fact it was a manufactured home.
 
Just think of the amenities you can afford if you choose a manufactured home over a site built home.
 
Take a look, and shop around. Make sure you are comparing apples to apples (same options, transportation, set up, sales tax etc… what the price includes) and make sure the company is a licensed manufactured home sales office. Don’t believe the “We will beat any other company’s price” line, because you may find out it is not true in the end. Many companies make a profit off of the contractor’s contract, and here at Statewide we do not mark up other contracts.
 
For a more in-depth look at Manufactured vs. Site built read the report at the link below.