Modular home construction can put you upside down on your new home mortgage very quickly.
When a professional panelized builder constructs a house, they are typically paid as the work is completed over several months.Many homeowners prefer this method to ensure that they have enough money to complete their dream home.
With a modular home, the builder will be constructing the majority of the home off site and will deliver and set up the building almost completed.For this reason, many builders want payment in full for the home before the expense of building it is done.
The problem is that if anything goes wrong, homeowners can easily get the ‘tail-light guarantee’ from the modular company – since they have been paid upfront, when they drive away the guarantee is over.
In addition, some mortgage companies may issue a construction loan for the upfront payment, and replace it with a mortgage later, but getting all of the money initially could be difficult for some borrowers and make a modular home a challenge to finance.
But not with Panelized construction which is not only a far superior home building method, banks and financial institutions prefer the craftsmanship and quality and tend to be more accommodating in acquiring financing.
Contact our panelized home financing expert today to learn more about home rates and the best way to finance your new home.
Modular homes are not well accepted. Although modular homes are sometimes built using high quality craftsmanship that is similar to Panelized built houses, they are often thought of as inferior, and similar to such manufactured housing as the doublewide trailer.
While this may be a misconception, it continues to exist. Because of these false notions, the value of your modular home may not be as high as it should be when it comes time to sell it.
Despite the fact that banks may lend to buyers in the same way they would for a stick built home, the potential buyer may still feel like the house isn’t worth as much because it is a modular building.
Modular homes often lack quality. Because of the way modular homes are manufactured and assembled, they may have additional problems when it comes to repairs and maintenance.
Not all modular home builders make the same quality products. If you are getting a seemingly great deal on the home, it may be because it is made of poor quality materials or is thrown together by substandard builders, which can cause problems like rook leaks or energy inefficiency or cause other issues that may make the home less of a good deal in the long run.
Modular homes can be expensive to finance. Financing on modular homes is sometimes similar to that of mobile homes, depending on the financing company you choose.
Some companies treat modular homes like mobile homes and finance them in the same way. Some sellers finance through the company and will give property loans as opposed to traditional mortgages.
Generally these loans have a 2 to 4 percent higher interest rate than comparable mortgages you can get on a traditional house. Over the life of the loan, this could cost the buyer thousands of extra dollars in payments.
Modular homes lack choice. Although some companies allow buyers to design their modular homes to their own specifications, more commonly the buyer is presented with a few options that the particular seller specializes in.
In some cases there may only be a handful of options, which can be a complaint for some buyers who feel there are not enough choices to get the house they really want.
Although they may be saving some money by going with a modular home, buyers are still investing a considerable amount of money and may not get exactly what they want.
Conversely, Panelized homes can be completely customized and refined even after fully constructed on the site. Any home style can be built with Panelized at better quality and for a similar investment.
Modular homes are a type of manufactured housing where components of the home are built in a factory and then assembled on site. These homes offer a less expensive alternative to traditional stick-built homes and often have a similar look as well.
While these types of homes have their distinct advantages, they also have common problems and complaints by owners. Knowing what you are getting into with a modular home will help you decide if it is the right choice for you before you shell out the money to buy one. Also it is important to note the comparable pricing of building a Panelized home, which is a far superior construction method.