Modular home FAQsWhat Is A Modular Home?A modular home consists of sections or "modules" constructed in a factory, then delivered and set-up on-site. Modular homes come in pre-designed plans or can be customized to any shape or size. Modular homes follow the same building codes as site-built homes, but are stronger and more energy-efficient. Plus, it looks the same as a regular house.Types of Modular HomesModular homes can either be on-frame or off-frame with differences in price, classification, and long-term value.Off-frame – The most-common, highest-quality modular homes are lifted off of their transport frame and placed onto a permanent foundation, which makes them more expensive and difficult to relocate. These homes can appreciate in value like site-built homes since they have lasting foundations, and the buyers also own the land.On-frame – These modular homes remain on a steel-frame chassis after delivery. Since the transport frame stays in place and they aren’t permanently attached to a foundation, many lenders and appraisers classify them as mobile homes. They're more affordable, and relocating them is easier.How Are Modular Homes Built?Modular home manufacturers build 80% to 90% of the home's sections or modules in a factory. Factories construct the walls, install drywall, appliances, and roof framing, paint, and inspect for quality-control. The factory work happens simultaneously with on-site work to prepare the foundation.Once the modules are delivered to the construction site, a crane lifts them into place over a permanent foundation. Contractors assemble the sections, connect the utility lines, and attach each piece to the foundation. Sometimes, the home is kept on the steel frame it was delivered on as part of the foundation.Contractors complete the home finishing and conduct minimal inspections. How Long Does It Take To Build A Modular Home?Building a modular home is 30% faster than a site-built house and takes 2 to 6 months for the construction, delivery, and assembly. The time depends on the size, customizations, and number of modules, and workers. The set-up time on-site takes only 4 to 6 weeks with a dozen workers.Can You Put A Modular Home on a Slab?A concrete slab lacks the strength to support a modular home. Modular homes are typically built on a basement or pier-and-beam foundation with a crawl space. The modular home's weight causes cracking and settling damages on slabs.Modular homes typically need space under the house for the HVAC, electrical, and plumbing connections during installation. If you buy an on-frame modular home, a permanent foundation is optional, which makes it cheaper. However, lenders may classify it as a mobile home, which may restrict your financing options.Can Modular Homes Have Basements?Adding a basement to a modular home costs $20,000 to $29,000 on average, depending on the size. Costs include design, permits, excavation, construction, and finishing work. Modular homes can be built on a basement foundation or a pier and beam system with a crawl space. How Long Do Modular Homes Last?Modular homes last for as many years or longer than regular stick-built homes. Modular homes use higher-quality materials and construction, which means lower maintenance costs. Plus, their safer, undergo inspections to ensure quality control, and look the same as traditionally constructed homes.Are Modular Homes Safe?Modular homes are safe, permanent structures that meet building code standards and regulations like site-built homes. Modular homes use 15% to 20% more wood and undergo strict inspection and testing before delivery. That makes them stronger and safer than traditionally built homes.Modular buildings are fixed to a solid basement foundation and are safer when dealing with flooding and hurricanes. Modular homes can withstand hurricane winds of 175-mph with less damage than traditional site-built houses.FEMA recommends modular homes fixed to a foundation as safe structures.Are Modular Homes A Good Investment?Modular homes are a good investment because they increase in value over time, like any other property. Plus, they’re more energy-efficient and last as long as site-built homes. The highest appreciation rates are for modular homes with a permanent foundation that includes the land and building ownership.Are Modular Homes Cheaper?Modular homes are typically 10% to 20% cheaper than site-built homes and use the same quality materials. Modular-building saves on construction costs and all inspections are done in the factory. Plus, modular homes are more energy-efficient, which saves substantially on monthly expenses.Can You Get A Loan For A Modular Home?To get a modular home loan, the top financing options are USDA construction loans, FHA loans, and VA loans that can later be converted to a mortgage. Check with your local bank for available options. Also, reputable modular home builders will refer you to a recommended lender.Hiring a Modular Home BuilderWhen hiring a modular or general contractor, make sure they have prior experience since it's a more specialized type of construction. Licensed will:Get permits before the project starts and follow building codes.Take on all project-supervision responsibilities.Recognize potential problems before they become an issue.Hire and manage subcontractors for specific tasks.Contractors will manage the site preparation, which includes clearing land, handling utility hook-ups, and foundation work. Then, they'll attach the modular home sections, and coordinate the finishings. Finally, they'll install extras like a driveway, porch, or garage.Getting Modular Home Setup QuotesBefore hiring a contractor:Get at least three in-person estimates to compare.Ask for recommendations from family, friends, and neighbors.Read reviews and check out their previous work on HomeGuide and Google.Pick specialized contractors over general ones if it’s a specific project.Ask for a full itemized contract in writing in case of a dispute.Avoid making large payments upfront. Never pay in full or in cash, and come up with a payment schedule for work completed.Questions To Ask Modular Home BuildersCan I see a portfolio of your prior modular-home experience?Are you licensed, insured, and bonded?Who's the project manager, and will you use subcontractors?What hours do you and your crew work?What permits do I need, and will you obtain them?What does your warranty policy include?What’s your payment schedule?We track millions of estimates homeowners get from contractors and share those prices with you. We adhere to strict editorial integrity.Want to use this data? Learn moreHomeGuide20+ Home Builders near youGet free estimates on HomeGuide from trusted local pros.View prosTable of contentsGet free estimatesHomeGuide20+ Home Builders near youGet free estimates on HomeGuide from trusted local pros.View prosRelated articlesCost to build a houseCost to build a garageMetal building homes costCost to build a guest houseCost to demolish a houseICF concrete house costBarndominium costShipping container home costA-frame house costMobile home costRelated articlesFind home builders in your areaHome Builders New YorkHome Builders Los AngelesHome Builders ChicagoHome Builders HoustonHome Builders PhoenixHome Builders PhiladelphiaHome Builders San AntonioHome Builders DallasHome Builders San DiegoHome Builders San JoseHome Builders DetroitHome Builders San FranciscoHome Builders IndianapolisHome Builders AustinHome Builders ColumbusHome Builders Fort WorthHome Builders CharlotteHome Builders BaltimoreHome Builders BostonHome Builders DenverFind pros nearbyHome Builders near meBarndominium Builders near meLog Home & Cabin Builders near meTiny Home Builders near meADU Contractors near meA-Frame Home Builders near meSpec Home Builders near meBuilding Contractors near mePole Barn Home Builders near mePool House Builders near meShipping Container Home Builders near meGuest House Builders near meHomeGuideHomeLog inAboutPressContact usHelpTop servicesHandymanPlumbersElectriciansLandscapersHouse cleaningHVAC companiesAC repairFurnace repairHome RemodelingBathroom RemodelersKitchen RemodelersTree Removal ServicesPest control companiesRoofing contractorsDeck BuildersHomeownersTips for hiringCost estimatorServices near meProsContractor leadsHomeGuide reviews© 2025 Liaison, Inc.•Terms of Use•Privacy Policy•Accessibility•Services, Modular Home Prices. The average cost of a 1,500 sq. ft. modular home is $75,000 to $150,000 or $50 to $100 per square foot for a base model, not including customizations, assembly, or on-site finishing work.For the same house, expect to pay $120,000 to $240,000 total for a complete turn-key installation. Modular Home Cost Per Square Foot. The average modular home costs $50 to $100 per square , Simply put, modular homes have sections that are built in a factory, rather than being fully built on a home site. These parts are then transported to the site and assembled by a builder. Modular homes – also often known as factory-built, prefabricated, or systems-built homes – still only represent about 1.5% of all single family homes in .