Okay, so here's what happened. I was reviewing our mortgage applications last month and noticed something interesting. More clients are coming to us about modular homes, and honestly, the questions they're asking tell me there's still a lot of confusion about what these homes actually cost. Let me simplify this for you because the numbers can get pretty overwhelming if you're not sure what's included.
According to Angi's 2026 modular home cost data, modular home prices in 2026 average $240,000 nationwide, with typical ranges falling between $160,000 and $320,000 depending on size, location, and customization level. Think of it like this: you're not just buying a house. You're buying all the pieces that go into making that house ready to live in.
The confusion usually starts because modular home builders advertise two very different price points. You'll see "$60,000 modular home" in one ad, then another company saying "$250,000 for similar square footage." That's because some quotes only include the base modules while others include everything from foundation to final fixtures. Frustrating, right?
Here's where it gets real. And honestly, this surprised me too when I first started working with clients on these projects. The advertised "base price" is just your starting point. According to HomeAdvisor's 2026 modular home pricing analysis, base modular units run $50-$100 per square foot for just the modules themselves, but the complete installed cost averages $80-$160 per square foot once you factor in delivery, site work, and assembly.
When we acquired our current process for evaluating modular home financing at AmeriSave, I realized how many hidden costs catch buyers off guard. The modules might cost $75,000, but by the time you add the foundation, utility hookups, permits, and finishing work, you're looking at $150,000-$180,000 total. That's why understanding the full breakdown matters so much for your budget.
The factory-built modules represent roughly 40-60% of your final project cost. Wait, let me clarify that. According to Spark Homes' 2026 modular cost breakdown, a 2,000-square-foot modular home's base modules cost $100,000-$200,000, but the turnkey installed price ranges from $200,000-$500,000 depending on foundation type, land conditions, and finish quality. What this means for you is that securing financing should cover your entire project scope, not just the modules.
Let me break down what you're actually paying for at different price points. The per-square-foot calculation varies dramatically based on what's included in the quote you're receiving.
According to Mobile Homes Laredo's 2026 pricing insights, the average modular home costs approximately $112 per square foot when including basic site work and standard finishes, though this can range from $80-$250 per square foot depending on customization level and geographic location.
For just the prefabricated modules before any on-site work begins, you're looking at $50-$75 per square foot for basic designs with standard materials. Mid-range runs $75-$100 per square foot for improved finishes and some customization. Premium designs cost $100-$150 per square foot for custom designs and high-end materials. A 1,500-square-foot home at the base level costs $75,000-$112,500 for the modules alone. But wait, that's not even delivered to your property yet.
Here's what the numbers look like when you include delivery, foundation, assembly, and finishing:
Home Size
Base Modules Only
With Complete Installation
1,000 sq ft
$50,000-$75,000
$80,000-$160,000
1,500 sq ft
$75,000-$112,500
$120,000-$240,000
2,000 sq ft
$100,000-$150,000
$160,000-$320,000
2,500 sq ft
$125,000-$187,500
$200,000-$400,000
According to Tri-Town Construction's 2026 modular home pricing guide, most buyers find the sweet spot for value in the $180,000-$250,000 range for finished mid-size homes, which balances quality materials, reasonable customization, and efficient construction without excessive cost overruns.
Location drives significant price differences. California and Northeast markets run 20-40% higher than Midwest or Southern states due to labor costs, permit fees, and transportation distances from manufacturing facilities. In my MSW program, we studied how geographic economic factors create these disparities. It's fascinating how location impacts everything from housing to social services. Actually, understanding those systemic factors helps me better serve our clients who are trying to afford homes in high-cost areas.
Let me walk you through every cost component so nothing catches you off guard. When we process applications at AmeriSave, clients who understand this full picture make better decisions about loan amounts and payment structures.
Before your home even arrives, the land needs work. According to multiple industry sources, land clearing and preparation averages $4,000-$11,000 depending on lot condition (Angi, 2026; HomeAdvisor, 2026). This includes tree removal and debris clearing at $500-$3,000 per acre, land grading and leveling at $1,000-$5,000, soil testing at $500-$2,000, and perc testing for septic systems at $1,000-$3,000 if needed.
Steep lots or properties with poor drainage require more extensive work. One of my project teams dealt with a site that needed $18,000 in grading and retaining walls. Way over budget because the buyer didn't factor this in initially. Lesson learned.
Your modular home needs a permanent foundation to qualify for traditional mortgage financing. Foundation costs vary significantly by type according to HomeAdvisor's 2026 foundation cost data: slab foundations cost $6,000-$12,000 for 1,500 square feet, crawl space foundations run $10,000-$18,000, and full basement foundations range from $18,000-$30,000 or more.
Foundation work represents 8-15% of your total project budget. Don't skimp here. Foundation issues are expensive to fix later and can affect your home's structural integrity and resale value.
Every jurisdiction requires permits for modular home installation. According to industry standards, permit costs range from $500-$5,000 depending on location and project scope (Angi, 2026). This typically covers building permits at $400-$2,000, electrical permits at $100-$500, plumbing permits at $100-$500, septic permits at $200-$1,000 if applicable, and impact fees that vary widely by municipality.
Urban and suburban areas generally charge more than rural locations. I'm still not 100% sure why some jurisdictions charge 10x more than others for essentially the same permits, but that's the reality.
Getting your home from factory to foundation involves serious logistics. Delivery costs depend on distance from the manufacturing facility, typically $3,000-$8,000 for standard distances under 300 miles according to multiple industry sources (HomeAdvisor, 2026; Spark Homes, 2026). Professional installation runs $5-$35 per square foot or $10,000-$35,000 total depending on complexity.
Installation includes crane services for setting modules, connecting module sections, sealing joints and weather barriers, interior finish carpentry, installing stairs and railings, and final trim work. If unexpected site challenges arise like discovering rock ledge or needing special equipment access, installation costs can increase 15-30% from the original quote. Always build contingency into your budget for these surprises.
Connecting your home to essential services represents another significant cost category. According to 2026 industry data, electric service connection costs $1,000-$5,000 depending on distance from power lines. Water connection runs $2,000-$10,000 for municipal water or $3,000-$15,000 for well drilling. Sewer connection costs $3,000-$12,000 for municipal systems or $5,000-$25,000 for septic installation. Natural gas lines cost $1,500-$5,000 if available. Propane tank installation runs $1,500-$3,000 for above-ground tanks.
Rural properties often face higher utility costs due to distance from infrastructure. If you're more than 500 feet from existing utility connections, costs can double or triple.
Popular additions that increase functionality and value include two-car garages at $28,000-$45,000 according to HomeAdvisor's 2026 construction cost data, decks or patios at $7,700-$20,000 depending on size and materials, basement finishing at $18,000-$30,000 or more for full finish, sheds or outbuildings at $2,500-$10,000, driveways at $3,000-$12,000 depending on length and material, and landscaping at $3,000-$15,000 for basic to moderate installations.
One thing I learned managing these projects: outdoor features often get cut from budgets when costs run high. But they significantly impact curb appeal and resale value. If you can swing it, include at least basic landscaping and a driveway in your initial financing. Your future self will thank you.
Most states charge sales tax on modular home purchases. Tax rates vary from zero in states without sales tax to 10% or more in some localities. On a $200,000 modular home, sales tax alone could add $8,000-$20,000 to your costs. Construction loan origination fees typically run 1-2% of the loan amount.
Here's where my work at AmeriSave really comes in handy. Understanding which mortgage products work for modular homes makes the difference between smooth financing and frustrating rejections.
The critical distinction is that modular homes become "real property" once permanently affixed to owned land with a foundation. According to Accounting Insights' analysis of modular home mortgages, this classification under the Uniform Commercial Code allows modular homes to qualify for the same financing options as site-built homes.
Manufactured homes built on a permanent chassis are considered "personal property" and face much more limited financing options with higher rates. This is a huge deal. The difference between a 6.5% mortgage rate and a 9.5% chattel loan rate means thousands of dollars per year.
If you're buying an existing modular home that's already built and installed, the process works exactly like financing a traditional home. According to 2026 mortgage market data, conventional loans for modular homes require minimum credit score of 620 though 680 or higher gets better rates, down payment of 3-5% for first-time buyers or 10-20% for standard terms, debt-to-income ratio maximum of 43-50% depending on compensating factors, and appraisal confirming market value and permanent foundation.
Interest rates in 2026 range from 6.25-7.5% for conventional modular home mortgages depending on credit profile and down payment amount. At AmeriSave, we offer rate locks up to 90 days to protect you from increases during the home search process.
If you're building a modular home from scratch, construction-to-permanent loans offer the smartest financing structure. According to S2A Modular's financing guide, these one-time-close loans combine construction financing with permanent mortgage financing in a single transaction.
One loan covers both construction phase and permanent mortgage. You make interest-only payments during the 6-12 month construction period. It automatically converts to permanent mortgage when construction completes. Single closing means one set of fees and one locked interest rate.
Key benefits over two-time-close loans include locking your interest rate upfront, saving $3,000-$8,000 in duplicate closing costs, avoiding requalifying for permanent mortgage after construction, and simpler process with less paperwork. Down payments typically run 10-20% depending on creditworthiness. At AmeriSave, we structure these payments to align with builder draw schedules.
Federal Housing Administration loans offer accessible financing for buyers with smaller down payments or less-than-perfect credit. According to Manufactured Housing Consultants' 2026 financing guide, FHA loans for modular homes require minimum credit score of 580 for 3.5% down or 500-579 for 10% down, down payment of 3.5-10% depending on credit score, home built after June 1976 and meeting HUD standards, and permanent foundation with real property classification.
FHA mortgage insurance costs more than conventional PMI, typically adding $100-$300 monthly to payments. But the lower down payment makes homeownership accessible sooner. On a $200,000 modular home, FHA requires just $7,000 down versus $20,000-$40,000 for conventional. Current FHA rates average 6.0-7.0% in 2026.
If you're eligible for Veterans Affairs loan benefits, modular homes qualify fully. According to Green Valley Homes' mortgage options analysis, VA loans offer exceptional terms for modular home purchases.
VA loan advantages include zero down payment required for most borrowers, no monthly mortgage insurance premiums, competitive interest rates currently 6.0-6.75% in 2026, and minimum credit score around 620 though some lenders go lower. The VA funding fee of 1.4-3.6% can be financed into the loan amount. On a $250,000 modular home, the fee runs $3,500-$9,000 depending on down payment and whether it's your first VA loan. Disabled veterans receive fee waivers.
U.S. Department of Agriculture loans support homeownership in eligible rural and suburban areas. According to Neighbors Bank's 2026 USDA loan guide, these zero-down-payment loans work well for modular homes in qualifying locations.
USDA modular home requirements include property in USDA-eligible rural area (surprisingly, this includes many suburbs), household income below area limits typically $100,000-$150,000 depending on region, minimum credit score 640 for streamlined processing, home meeting HUD construction standards post-1976, and permanent foundation with real property classification required.
USDA loans charge 1% upfront guarantee fee plus 0.35% annual fee. Interest rates typically run 5.75-6.75% in 2026. The income limits surprise many buyers. A family earning $120,000 can often still qualify in rural markets. Check USDA eligibility maps online or contact AmeriSave to verify if your desired location qualifies.
Let me share what actually works to reduce costs without compromising quality. These aren't theoretical tips. They're strategies I've seen clients successfully implement.
Start with a manufacturer's standard floor plan rather than fully custom designs. Standard plans cost 20-40% less than custom architectural work. Then customize selectively by keeping the basic footprint and room layout, upgrading finishes where it matters visually, skipping expensive structural changes like moved walls or complex rooflines, and planning future additions rather than building everything upfront.
You can always add a deck, finished basement, or garage later when finances allow. Building the core home affordably gets you into homeownership sooner. I actually used this strategy when my husband and I were looking at properties in Louisville. We prioritized getting into the house first, then added features as our budget recovered.
Location drives hidden costs. Look for relatively flat cleared land requiring minimal grading, proximity to existing utilities to minimize connection costs, areas with lower permit fees and less restrictive building codes, and sites accessible by standard delivery trucks without special equipment needs.
I remember this one couple who saved $15,000 on site prep by choosing a lot that was already cleared and level versus the sloped wooded lot they initially wanted. That savings went into kitchen upgrades instead. Much better return on investment.
Certain costs are easily DIY-able if you have skills and time. Landscaping saves $3,000-$5,000. Interior painting saves $2,000-$4,000. Deck building saves $3,000-$7,000 if you're handy. Some finish carpentry like baseboard installation is manageable.
Don't attempt electrical, plumbing, or structural work unless properly licensed. Code violations create financing nightmares and resale problems. Trust me on this one.
After reviewing countless applications, certain mistakes keep appearing. Learn from others' experiences so you don't repeat them.
Buyers focus on the advertised module price without accounting for site work, utilities, and finishing. This leads to running out of funds mid-project. Always add 15-20% contingency to your budget for unexpected expenses. I can't stress this enough.
Get pre-qualified with AmeriSave before even talking to builders. This establishes your realistic budget and strengthens your negotiating position. Plus you'll sleep better knowing exactly what you can afford.
Read every detail about what's included versus excluded. Are permits in the base price? What about delivery and setup? Utility connections? Many disputes arise from unclear contract terms. Insist on itemized breakdowns. If the builder gets defensive about providing details, that's a red flag.
Even factory-built homes need thorough inspections after installation. Hire an independent inspector not one recommended by the builder to verify proper module connection and sealing, correct utility installations, code compliance for all work, and quality of finished carpentry. Spend $400-$600 on inspection to potentially avoid thousands in repair issues.
Not all customizations add value. That exotic countertop material or unusual floor plan might appeal to you but limit future buyer interest. Stick with mainstream choices for the best investment return. The textbook answer is "personalize your space," but really you should think about resale from day one.
According to CNBC's September 2026 housing report, the modular home industry represents just 1-3% of new single-family home starts nationally but is growing rapidly as housing affordability challenges persist. Several trends suggest modular costs will become increasingly competitive.
New factories opening in 2024 and 2026 will increase manufacturing capacity and create competition, which should keep prices in check. According to research in the field, companies like Fading West Development are growing, and their Colorado facility is using lean manufacturing to cut costs by up to 20% (CNBC, 2026).
Better understanding of lenders is also helpful. As more banks and credit unions learn how to work with modular homes, more financing options become available and rates get better. Five years ago, it was hard to find lenders who would work with modular homes. Most big mortgage companies, like AmeriSave, are still willing to lend money for these homes.
To help with the affordability crisis, some places now offer tax breaks, lower permit fees, or faster approvals for modular housing. In 2026, New York Governor Kathy Hochul announced a plan that included modular homes as a key way to increase the supply of affordable housing across the state (CNBC, 2026).
More and more factories are using automation and precision manufacturing, which makes things better and costs less money to hire people. These efficiencies should keep making prices lower compared to traditional construction. Modular construction's roughly 25% cut in material waste and better energy efficiency are in line with green building incentives and rules, which could save even more money (CNBC, 2026).
I'm really looking forward to the future of this industry. I think modular construction will become much more common in the next 5 to 10 years because of the housing crisis and the fact that more people are accepting factory-built homes.
The average cost of a modular home in 2026 is $160,000 to $320,000 installed, or $80 to $160 per square foot. Before site work, foundation, utilities, and finishing, base modules cost $50 to $100 per square foot. You need to include the costs of getting the land ready ($4,000–$11,000), putting in the foundation ($6,000–$30,000 or more), getting the permits and fees ($500–$5,000), connecting the utilities ($2,500–$25,000), and delivery and installation in your total project budget.
The real savings come from building homes faster (7 to 9 weeks instead of 6 to 9 months), paying less for labor, and wasting less material. These savings are usually 10 to 20% for homes that are similar. But don't think that modular homes will be "cheap." They are cheaper but still built well and will go up in value like regular homes.
You can get the same kinds of loans for a modular home as you can for a site-built home, such as conventional, FHA, VA, and USDA loans, as long as the home is permanently attached to a foundation on land you own. At AmeriSave, we offer both construction-to-permanent loans for new homes and regular mortgages for existing modular homes. Our team knows all the ins and outs of modular financing and can help you every step of the way.
To buy a modular home successfully, you need to make a detailed budget, get help with financing, and have realistic expectations about what is included in the base price and what is not. Do your research, hire professionals who know what they're doing, and leave room for unexpected costs.
A 1,500-square-foot modular home will cost between $120,000 and $240,000 in 2026, according to Angi and HomeAdvisor. This includes everything you need to move in. This includes the base modules, which cost between $75,000 and $112,500, as well as delivery, installing the foundation, preparing the site, connecting utilities, and finishing work. The base modules cost $50 to $100 per square foot, and you'll have to pay an extra $30 to $60 per square foot for installation and all the other work that needs to be done on the site. The total cost depends a lot on where you live, the state of the land, the type of foundation you choose, and the quality of the finish. A simple slab foundation might cost $8,000 to $10,000 more, while a full basement might cost $20,000 to $30,000 more. Location is very important because the same 1,500 square foot home costs 25–40% more in California or the Northeast than in the Midwest or the South. This is because of higher labor costs, permit fees, and longer distances from factories. If you don't already own property, remember that these costs don't include the cost of buying land. People often get confused because they think the price of the module is the total cost. It's really just the beginning.
According to CNBC's 2026 housing analysis and several other industry sources, modular homes usually cost 10–20% less than similar stick-built homes. The savings come from a number of things, such as factory construction efficiency, which cuts labor costs by 40–50%, about 25% less material waste from precise computer-aided cutting and bulk purchasing, and faster construction times of 7–9 weeks instead of 6–9 months for traditional homes, which lowers financing interest costs. For example, a 2,000 square foot mid-range home might cost $280,000-$400,000 to build on-site traditionally, while the same quality modular home runs $220,000-$320,000 installed, representing $60,000-$80,000 in savings. But modular homes aren't "cheap" in the strictest sense, and when you add in the cost of preparing the land, building the foundation, hooking up utilities, getting permits, and making changes, the total cost goes up quickly. Some costs are actually higher for modular construction than for traditional construction. For example, delivery logistics can cost between $3,000 and $12,000. When you're building a design that's pretty standard, the value proposition makes the most sense because that's when factory efficiencies give you the most benefit. At AmeriSave, we help clients figure out if modular construction is a good financial choice for their location and situation. Sometimes the answer is yes, and sometimes it's not the right fit.
Depending on the program you use, the credit score requirements for modular home financing can be as low as 500 or as high as 680. According to the Manufactured Housing Consultants' 2026 financing guide, you can get an FHA loan with a credit score as low as 580 for a 3.5% down payment or even 500–579 for a 10% down payment. Most conventional mortgages need a credit score of at least 620, but if your score is 680 or higher, you can get better interest rates and terms. Most VA loans for veterans with good credit require a score of at least 620, but some lenders will go as low as 580–600 for borrowers who are well-qualified and have strong compensating factors. USDA loans are easiest to get if your credit score is 640 or higher. However, if your income and debt ratios are good, manual underwriting can approve scores as low as 580 to 620. The interest rate you get depends on your credit score. For instance, a borrower with a credit score of 760 might pay 6.25% on the same loan, while someone with a credit score of 620 might pay 7.25%. This is a difference of about $120 a month on a $200,000 mortgage. If your credit score is below 620, I suggest you work on raising it for 6 to 12 months before applying. The difference in rates will cost you more than $43,000 over the life of a 30-year loan. We can look at your credit profile at AmeriSave and suggest specific steps you can take to improve your score before you apply. A few small changes can have a big effect on what you can get.
Yes, modular homes can get FHA, VA, and USDA government-backed loans as long as they meet certain requirements, according to several mortgage financing companies, such as Green Valley Homes and Neighbors Bank. The most important thing is that the modular home has to be classified as "real property" instead of "personal property." This means that it has to be permanently attached to a foundation on land that you own. In order to get an FHA loan, the house must have been built after June 15, 1976, meet HUD construction and safety standards, be permanently attached to an approved foundation, have at least 400 to 600 square feet of living space (depending on the program), and be taxed and classified as real property instead of personal property. You must also be a qualified veteran or active-duty service member to get a VA loan. The requirements are similar to those for a VA loan, such as installing a permanent foundation, meeting VA minimum property requirements, and classifying the property as real property. To get a USDA loan, the property must be in a rural area that is eligible for USDA loans, the household income must be below the area limits, and the property must meet the same permanent foundation and real property standards. Once these conditions are met, the financing process is the same as it is for regular home purchases. The difference between modular and manufactured homes is something that confuses a lot of people. Because they are considered personal property even when they are on land, manufactured homes built on a permanent steel chassis have fewer financing options and higher interest rates. We often help people buy modular homes with FHA, VA, and USDA loans at AmeriSave. We can walk you through the specific steps you need to take. Last month, I helped a veteran client buy a beautiful modular home with a VA loan and no down payment.
According to several industry sources, it usually takes 3 to 6 months from placing an order to moving in to a modular home. This is 30 to 60% faster than traditional stick-built construction, which takes 6 to 12 months on average. There are three main parts to the timeline. Building a factory can take anywhere from four to twelve weeks, depending on the size and complexity of the home. The modules are built indoors in climate-controlled facilities, so weather doesn't slow things down. Simultaneously, site preparation takes 2 to 6 weeks and includes putting in the foundation, connecting utilities, and getting permits. After the modules arrive, it will take 2 to 4 weeks to finish the installation and final touches. This includes putting up the crane, connecting the sections, finishing the inside, connecting the utilities, and doing the final inspections. Mobile Homes Laredo's research shows that a standard 1,800 square foot modular home might spend 8 weeks being built in the factory, 4 weeks getting the site ready, and 3 weeks being installed and finished. This adds up to about 15 weeks or 3.75 months from the time the order is placed to the time the home is ready to move in. Some builders say that simple designs can be built in as little as four months, while more complicated custom homes may take nine months. The parallel work streams give you the speed advantage. While your modules are being built in the factory, site preparation happens at the same time. In traditional construction, each phase has to be finished one at a time. This shorter timeline saves money on the interest on construction loans, the cost of temporary housing if you're between homes, and the chance cost of not building up your home equity. One important thing I learned about project management is that these timelines are based on the idea that everything will go smoothly with permits, inspections, and site conditions. Even with well-managed projects, things can go wrong and cause delays. Plan for an extra 2 to 4 weeks of contingency time in your budget.
Many people who buy modular homes are surprised by the hidden costs because the prices that manufacturers advertise often only include the base modules and not everything else needed to live in the home. The most common hidden costs I see are site preparation work that goes beyond just leveling, like removing rocks for $3,000 to $10,000, improving drainage for $2,000 to $8,000, or building retaining walls on sloped lots for $5,000 to $20,000 or more. Utility connection distances where costs go through the roof if you're more than 500 feet from existing infrastructure. For example, well drilling costs between $3,000 and $15,000, septic systems cost between $5,000 and $25,000, and electric service extensions cost between $5,000 and $15,000 or more for properties that are far away. In some places, the cost of permits is much higher than the estimated range of $500 to $2,000. In California and the Northeast, all the necessary permits and impact fees can cost between $5,000 and $12,000. Sales tax is another big cost that many buyers forget about. In most states, it adds 4% to 10% to your purchase, which is $8,000 to $30,000 on a $200,000 home, depending on the rate in your state. If you live more than 300 miles from the factory or need special equipment to get to a hard-to-reach site, delivery costs can be as high as $15,000 to $25,000. For regular deliveries, they usually cost $3,000 to $8,000. During construction, change orders often add 5–15% to the total cost because buyers decide on upgrades or changes on the spot when they see the home being built. Based on years of working on these kinds of projects, my best advice is to set aside 20% more than you think you'll need. If you plan to spend $200,000, you should have $240,000 in financing. This cushion stops the worst-case scenario of running out of money in the middle of a project and having to accept bad solutions or take out expensive short-term loans to finish building. Too many times, I've seen this happen.
You can add a full or partial basement to a modular home just like you would to a regular house. However, this will greatly raise the cost of your foundation and you will need to plan for it from the start of your project. HomeAdvisor's data on construction costs shows that modular homes' basement foundations cost between $18,000 and $30,000 or more, depending on size and soil conditions. Slab foundations, on the other hand, cost between $6,000 and $12,000. The same building methods are used to put the modular home on a poured concrete basement foundation as they are for stick-built homes. When planning your basement, think about whether you want it to be finished or not. Framing, drywall, flooring, and mechanical work on finished basements cost an extra $20,000 to $60,000. The design of the basement also matters, whether it's a walkout or a standard one. Walkout basements are great for sloped lots and add a lot of value to living space, but they cost 20–30% more than regular basements. Excavation is harder and requires more waterproofing when the soil and water table are in bad shape. Some modular home builders make designs that are ready for basements, with the right access points, reinforced flooring systems to handle the span, and built-in stairway options. When I've managed these projects, I've learned that if you're thinking about adding a basement, it's best to include it in your original plans rather than trying to add it later. Retrofitting is almost impossible once the home is built. The decision about the foundation is final. We can add the cost of the basement to your construction-to-permanent loan at AmeriSave. This way, you're paying for everything at mortgage rates instead of cash or higher-interest loans. In many markets, basements are great investments because they give you about 40–60% more usable square footage than above-grade space.
One of the most important things for buyers to know is that the financing difference between modular and manufactured homes is very big. In 2026, the average interest rate on traditional mortgages for modular homes will be 6–7%. For manufactured homes, on the other hand, the average interest rate on chattel loans or specialized manufactured home loans will be 7.5–10% or higher, which is a lot more money. The main difference is how the property is classified. Modular homes are considered "real property" because they are permanently attached to foundations on land that the owner owns and meet the same local building codes as stick-built homes. On the other hand, manufactured homes are built on a permanent steel chassis that meets HUD codes and are often considered "personal property," like cars, even when they are on land. This difference in classification has a big effect on the terms of the loan. Accounting Insights says that modular homes can get 30-year fixed-rate mortgages with down payments as low as 3–5% for FHA or conventional loans. VA and USDA loans don't require mortgage insurance, and you can get up to conforming limits on the loan amount. Manufactured homes usually have much stricter terms, such as higher interest rates that cost thousands more each year, shorter loan terms that are often only 15 to 20 years, bigger down payments of 10 to 20% or more, and lower loan-to-value ratios, which means you need more cash up front. For instance, a modular home buyer with a $200,000 home and a 6.5% mortgage pays about $1,265 a month in principal and interest. A manufactured home buyer with an 8.5% chattel loan pays $1,537 a month. That's $272 more a month, or $98,000 more over 30 years, for the same price. This is why it's so important to know what the different types of housing are when you're looking for cheap places to live.
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