Modular homes have become increasingly popular over the years for a variety of reasons and while they will never replace traditional home construction, there may be times when a modular homeTarget Inflation Rate opportunity will present itself. First, don’t make the mistake of confusing a modular home with a mobile or manufactured home.


A modular home is so-called because the major structural components are made off-site at the factory and shipped to the location where the home will be build. Walls, trusses, ceilings and flooring are all built at the manufacturer and then assembled on-site.  A mobile home on the other hand is completely manufactured at the factory and shipped to a manufactured home dealer. When you buy a mobile home, many times the dealer will also offer to sell you the land to place the mobile home. In either case, if this is a new purchase, you’ll need to own the land the unit will be placed or otherwise be able to sign a long-term lease.

Modular homes are often found in communities where modular construction is the norm. Modular homes are lower cost compared to traditional construction and therefore developers can build more homes with less money. And because modular housing is so advanced these days, it’s almost impossible to tell the difference between a modular home and a “stick built” structure. That said, are they good investments?

Certainly they can be if the unit is surrounded by other homes built by the modular method. If the home was built on a lot surrounded by homes that were built in a traditional fashion, it’s very possible you won’t be able to get a mortgage on it. Lenders will require evidence of marketability of a particular property and can get that evidence reviewing recent sales of similar properties in the neighborhood. If your unit is the only modular property, you’ll run into some financing problems. Otherwise, if the property is surrounded by similar modular homes, don’t discount the possibility solely based upon the mode of construction.