The housing market continues to be in a slump. But, when you are one of those fortunate ones who are capable of building their dream home then you must concentrate on a modular home. There are many benefits of opting for a modular home, but, unfortunately, this idea hasn’t touched the general public in a significant way. The reason behind this is many people are perplexed and they end up mixing the term ‘manufactured’ or ‘modular’ homes. This has resulted in a belief that the structure of a modular home isn’t like the regular homes and they are less sturdy.
A modular home gets built in a factory, generally with an assembly line. When the modules are built, they get transported to the site of the building in the form of separate units. The materials remain the same as your standard-built home, and the exception is they come together differently. The best thing about modular homes is you are liberal to follow your building codes and you can upgrade or modify the home plans that you find fit enough. Based on your modular home prices, you can develop your own floor plans, window styles, roofing materials, flooring, roof elevations, etc. So, as you can tailor-make your home in a contemporary building scenario, the cost-effectiveness opens up apparently.
Get aware of the construction loans
You must be mindful about the fact that a construction loan meant for a modular home carries a greater rate of interest compared to a usual mortgage as it actually is a line of credit. It will only cover that amount of cost of developing your modular home which has been determined beforehand. The cost of modular homes includes the cost of your building lot, the legal fees that are linked to your construction, the price of the building permits and other extra materials that are required for finishing your home.
You might come across a creditor of construction loans who will agree to comprise the amount of interest that you pay at the time of construction and cover the cost overruns (if any). None of the work that has been done on your modular home would get paid until your lender inspects it and when a specific phase of the construction has got completed and met the standards of inspection. If you require more payments compared to what your lender agreed, then you might be charged an extra fee for every additional payment.
Get known to the market trends
Market trends divulge that the modular home prices cost 20%-40% lesser compared to the site-built houses. However, it is unwise to hope that the costs of modular homes are only a fraction of the price of other homes. Modular houses cost halfway between the site-built homes (highest) and mobile homes (lowest). Again, the manufacturers of modular homes do promise superiority at low cost. They come equipped with a purchasing department for sourcing their raw materials plus fittings. Modular homes do qualify for loans at a very low rate and the finest terms. Today’s modular homes do cover the whole spectrum of the housing market from single-family, affordable homes to even the luxury log homes.
September 30, 2018