THE 2021 MODULAR HOME BUYER'S GUIDE - MODULAR MEANS MORE - Modular Home Builders Association
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THE 2021 MODULAR HOME
BUYER’S GUIDE
The complete guide to buying and selling your modular home.
Finding the Right Builder What Will My Modular Home Cost? Latest Design Trends
MODULAR MEANS MORE
Signature Building Systems, a modular
manufacturer with 25+ years of experience,
combines the efficiency of modular
manufacturing with the attention-to-detail
of custom construction. Our approach was
perfected by our dedicated
team over time, producing high-
quality modular homes with fully
customizable results along the
East Coast.
In addition to our custom
design process, we have
developed a refined collection
of classic floor plans ready for
expedited production. These
models were created to make
the homebuilding process
more efficient, seamless, and
affordable—while retaining
our trusted attention to detail. To browse
Signature’s portfolio of single-family and
multi-unit housing, please explore our website
or reach out to us at the contact information
below.
570-774-1000 ■ info@sbsmod.com
signaturebuildingsystems.com
LET’S BUILD YOUR DREAM HOME TOGETHER. FIND A MODULAR BUILDER IN YOUR AREA AT CHAMPIONHOMES.COM
ABOUT MHBA The mission of the Modular Home Builders Association (MHBA; formerly the Modular Building Systems Association) is to be the primary organization advancing the legislative and regulatory interests of the modular industry in the United States. The MHBA strives to increase awareness of the value of modular construction by consumers, suppliers, builders, and government officials; it advocates public policies that make modular building systems available on a cost-effective basis. The MHBA serves as a forum where members, suppliers, and builders work together for the purpose of fostering the exchange of information and innovation in the modular industry. The Modular Home Builders Association is the only national organization dedicated exclusively to serving the modular home builders and manufacturers. The MHBA also advocates at the state and federal level to ensure a fair and competitive playing field for the industry.
C ONT ENTS Section 1: Modular 101 What’s in a Name — Modular, Manufactured, Prefab, Offsite? 8 Guidelines, Standards & Codes for the Residential Modular Industry 10 7 Myths About Modular Homes 12 Section 2: Budgeting and Financing Step 1: Finance Planning 14 What Will My Modular Home Cost? 16 Ways a Modular Home Can Save You Money 18 Section 3: Working with a Modular Home Builder Tips to Find the Right Modular Builder for You 20 Latest Design Trends 22 Modular Home Gallery 24 How to Prepare Your Lot for a Modular Home 30 Section 4: Other Considerations What is HERS? 32 Zero Net Energy Modular Homes in 2020: The Right Time for Requirements? 34 How Does Modular Construction Reduce Material Waste? 36 Do Modular Homes Hold Up in Extreme Weather? 38 Why a New Home Warranty Matters 41
ed
Your Vision.
Our Crafstmanship.
We’re here to build
your dream home! We’ve simplified the home building process for over
65 years with unmatched passion for craftsmanship and
high-quality homes.
• Quality homes at the most affordable prices Contact us to learn more about the Ritz-Craft Advantage!
• Unmatched craftsmanship
Start Dreaming with Free Floor Plans and Tools at:
• Over 100,000 homes built to date Ritz-Craft.com
• Exclusive features and customization options Or Call:
• Experienced builder network providing professional Northeast Division: 800-326-9836
design assistance and workmanship Midwest Division: 877-878-4025
TM
THANKS
TO OUR CAP
SPONSORS!
MHBA launched the Consumer Awareness Program
YEARS
(CAP) to better educate potential new homebuyers.
1990-2020
T H E P E AK O F Perfection
MHBA manufacturer members voluntarily agree to 1.800.326.9524
www.apexhomesofpa.com
add $10 per module onto each newly constructed
home and we dedicate those funds to marketing the
modular home industry. This small increase of revenue
provides MHBA with funds to effectively reach
thousands of potential new modular homebuyers.
MHBA focuses on educating new homebuyers
about the advantages of building a modular home
and providing them with access to a vast amount
of resources that will showcase MHBA members
extensive experience in the industry. Through MHBA,
homebuyers will gain access to sample floorplans,
be able to find a local builder, and will even be able
to request an estimate for their dream home.
CAP participants benefit from having their homes
highlighted in the gallery, having their logo placed
on the homepage, and receiving the latest marketing
materials from CAP!
MODULAR 101
What’s in a Name —
Modular, Manufactured,
Prefab, Offsite?
I
f you are like many home buyers today, you might be a little
confused over the terms used to describe a “non-tradionally
built” home. So let’s start right there with the term “traditional”
home. When you see a home described in this way, it simply
means that the home was built the “traditional” way that homes have
historically been built. A home buyer works with a general contrac-
tor to design their new home, the contractor gets the permits, hires
subcontractors, orders the materials, the materials are shipped to
the home site where the construction BEGINS. (We’ve simplified it a
bit here for this article, but those are the basic steps). This method
is also referred to as “site-built,” stick-built,” or “conventional”. This
is the way a majority of homes are built in the United States, but it is
NOT the most efficient of effective way to build a home!
Unlike site-built homes, there are a full array of processes where
the construction begins somewhere other than the home site. In
other words, the construction occurs OFFSITE. So your home is either
constructed primarily ONSITE (on the final site where your home is
located) or OFFSITE (a nearby facility where the construction occurs
in a controlled setting).
Builder: Zarrilli Homes, LLC
Manufacturer: Simplex Homes
SECTION 1
Square Footage: 2,366
Stories: 3
Total Bedrooms: 4
Total Bathrooms: 3
8 Modular Home Builders Association
So that is the first distinction.
If your home is built offsite, it can
be constructed using a number
of different processes – modular,
manufactured, or panelized for
example. Here are the key differ-
ences between these processes:
Modular means your home
is being constructed in three
dimensional boxes or “modules”
at the factory. A modular home
is built to the same local building
codes (International Residential
Code) as a stick-built home. The
materials are shipped to the
factory where construction of
your home BEGINS in the form of
larger components. These components (modules)
are transported to your home site where your con-
tractor will permanently attach them to each other
and to the foundation. Once completed on your site,
a modular home is virtually indistinguishable from
a stick built home and meets all the same codes
are requirements. It is important to note, there is no
“modular building code” as homes built in this man-
ner must meet the same local codes where the final
home site is located, not where it is constructed.
Manufactured home – Unlike modular homes,
a manufactured home is one that is built to the
federal Housing and Urban Development (HUD) shipped to the site, instead of in boxes or modules.
Code. This is a national code that preempts local Transportation costs are often more favorable, but this
codes. Homes built to the HUD code are sometimes method requires more on site work.
referred to as “mobile homes” or by the slang Prefab is a marketing or slang term, short for
name “trailers.” These homes are designed and the word “prefabricated.” This simply mean that the
constructed to meet a niche of buyers seeking “af- home or parts of it were prefabricated before they
fordable housing” options. As such, a manufactured arrived at the site. Roof trusses are a great example of
home generally costs much less than a modular or prefabrication in homes. Many people in the industry,
stick built home. WORD of CAUTION: If you want particularly in the west, have embraced the term
a modular home and facing budget concerns, be “prefab” in an effort to move away from other terms
aware that some builders may steer you towards a they deem to be less desirable.
manufactured home as a lower cost solution. There Summary: So if you are still confused remember
are several companies that built both modular and this one key point to ask your contractor – what code
manufactured homes. will my home be built to? If the answer is something
Panelized – similar to modular in that these other than your local building code (typically a version
homes are built to the local IRC code. But unlike of the International Residential Code), chances are
modular, a panelized home is built wall by wall and you are not getting a modular home.
Modular Home Buyer’s Guide 9
Modular
101
iStock.com/Rawpixel
Guidelines, Standards & Codes
for the Residential Modular Industry
I
t seems as if the topic of modular construc- known as the “2018 IRC”. Each state has its own
tion has become quite popular these days. code adoption cycle and polices for amending the
But with this newfound popularity comes a codes, resulting in a national base-model code
great deal of confusion and even misinfor- with many regional variances.
mation. We often gets calls from people asking If the code is silent on an issue, it is presumed
about the “modular building code.” So, let’s tackle that the code applies, as silence in the code is not
that question first by stating there is no modular an exemption from the code. Precisely because
building code. the word “modular” is not in the codes and the
What our industry does have is a series of topic is gaining in popularity, our industry has
administrative rules and regulations, and in some been working with the International Code Council
cases guidelines and standards in place. But in to develop a series of guidelines and standards.
terms of the building or home itself, our industry
constructs to the same applicable building codes Guidelines
as our site-built peers. In the United States, that Guidelines are not codes or standards and use
is typically a state-adopted version of the Inter- non-mandatory language. A guideline is a tool
national Residential Code (IRC). The codes are to educate and guide a code official or end user
updated every three years, with the latest version relative to a specific topic or use. While not
10 Modular Home Builders Associationenforceable, it does give jurisdictions a great asking is this: “What rules and regulations do I
deal of relevant information about what kinds of need to know about to build a modular project in a
questions they should be asking and provides particular state.”
end users a safe path forward until such time The modular industry is primarily regulated
as the building codes can catch up. Guidelines at the state and provincial level, unlike the feder-
are often used to address emerging trends and ally regulated HUD Code manufactured housing
technologies, as the codes themselves tend to industry. Most states (thirty-five at last count)
be very reactive. Remember, in the U.S. the codes have an administrative agency or office that over-
are updated every three years with state adop- sees the industry and sets out the requirements
tion cycles trailing behind. Practically speaking, for doing business. These requirements, while
the 2018 IRC may not be adopted and in force in different from state to state, generally address
some states for another six to nine years. items such as the inspection process in the plant,
quality control issues, and how building plans
Standards are to be submitted, reviewed, and approved.
Standards are developed when it is determined We stay in regular contact with these agencies
that there exists a lack of regulatory documents to help ensure a fair balance of allowing the
necessary to govern a given subject. There are industry to build a safe product without excessive
many standard writing bodies including ANSI, UL, regulatory requirements.
ISO, and CSA developing standards for everything Given the number of state programs and the
from consumer products to classroom acoustics variances in them, the industry and the ICC are
for example. The purpose of a standard is to bring currently developing two new ANSI Standards:
together stakeholders including consumers, pro- ANSI/ICC 1200 Design, Fabrication, Construction,
ducers, and regulatory authorities on a particular and Assembly and
subject to develop “the way things should be.” As ANSI/ICC 1205 Standard for Off Site Construction
the name itself implies, they establish an agreed Inspection and Regulatory Compliance
upon standard way of doing something. It is this second standard, ANSI 1205, which
we hope will ultimately replace the thirty-five
Building Codes unique state program rules and requirements.
According to the ICC, “The regulation of the built These working groups meet regularly and have
environment is a unique experience within the an expected publication date of September
United States. Even those within the industry may 2021 for these standards. At that point, we will
understand only a part of the process pertaining work to get the standards referenced in the next
to their location or discipline. Codes and adop- cycle of the building codes and within the state
tion process can vary significantly from state to administrative programs.
state, and in some cases even county to county.” One of the great benefits of being a member
The building codes regulate how we construct of the Modular Home Builders Association is that
homes and buildings. The codes are adopted and with your input, we are involved in shaping our
regulated at the state or provincial level and most industry’s regulatory framework.
often enforced at the local level by the “authority This article was adapted from an original
having jurisdiction.” article by the Modular Building Institute,
Within the building codes, there is no mention found at https://www.modular.org/HtmlPage.
of special treatment, exceptions or exemptions aspx?name=MA-oi-modular-building-codes.
for projects built using modular construction.
Therefore, these projects must meet all applicable
sections of the building code. When many people
ask about the “modular code” what they are really
Modular Home Buyer’s Guide 11Modular
101
7 Myths About Modular Homes
I
f you are considering building a home, modular MYTH #2: They Aren’t As Safe
homes are a reasonable choice. However, there Modular homes meet the same construction
are a number of myths and misconceptions that standards as traditionally-built homes. They can
can make you less inclined to buy one. resist fires, earthquakes, hurricanes and any other
Here are some of the most common myths disaster as well as any other house. In fact, modular
about modular homes: homes have often been chosen by people rebuild-
ing after natural disasters because the building
MYTH #1: They’re Just the Same as Trailers/ process is so much faster. In fact, the standards
Mobile Homes applied to modular homes are often higher than
Modular homes are distinct from “manufactured those traditional builders must meet.
homes.” Trailers are ultimately intended as
temporary housing (which too often becomes MYTH #3: They’re Ugly
permanent). Modular homes are real houses, Quite the contrary is true! As already mentioned,
which are built off site and then assembled on modular homes are indistinguishable from tradi-
the construction site. A completed modular home tionally-built homes. You can pick from a variety of
is indistinguishable from a traditionally-built designs that will suit your taste and fit in with your
home of similar size and style. It’s not a different neighborhood. Modular homes can be built with
type of house, just a different way of putting a three stories, and with all the accent features you
house together. might want. The only limitation is that the truck has
to be able to access your lot.
Manufacturer: Ritz-Craft
Square Footage: 2,200
Stories: 2
12 Modular Home Builders AssociationA number of stunning homes have been
constructed using the modular method. View some
beautiful examples!
MYTH #4: They’re Small
Again, this is a confusion between modular homes
and mobile or manufactured homes. Modular
homes are not intended to be moved. Mobile homes
are, and thus need to fit in their entirety on a large
semi. While each module has to be moved, modular
homes can be built to any size, with the limitation
being the lot you are building on.
MYTH #5: They’re For People Who Can’t
Afford Better
The fact is that modular homes come in all sizes
and styles for a range of budgets. While it’s true MYTH #7: They Don’t Last As Long
that most modular homes can be built less expen- Modular homes became popular in the 1950s due to
sively than site built homes, the primary reason for the need to build housing quickly after World War II,
choosing them is speed rather than price. and many of those homes are still around and being
lived in. A new build modular home will last just as
MYTH #6: They’re Made With long as, and appreciate value as much as, a site-built
Cheaper Materials home. A future owner may not even know the home
Modular homes are made with the same standard was modular.
of building materials. The reduced cost comes from Modular homes are a great option if you are
the fact that it takes less time to build them, not any looking to build your own home on a shorter timeline.
corners being cut in materials or construction. Due Modular home construction also has environmental
to the controlled factory environment that modular benefits and can even save you money!
homes are built in, the materials aren’t exposed To get in touch with a modular builder in your
to the elements. This keeps quality materials safe area, use our Find a Builder feature at
from avoidable deterioration http://modularhousing.com/Finder/Default.aspx.
Modular Home Buyer’s Guide 13Step 1:
Finance Planning
B
efore building your new home it is encouraged that you
get your finances in order. An important, if not the most
important, step in your homebuilding process is learn-
BUDGETING &
ing the amount of funds available at your disposal. The
construction loan process can seem daunting but understanding this
process will ease the homebuilding process.
The construction loan may be different at each financial institu-
tion but overall homebuilders should seek a Construction-to-Perma-
nent loan option. This is designed for future homeowners to finance
FINANCING
the construction of their home and then roll the loan into a mortgage,
this should allow the homeowner to only pay closing costs once.
1. Pre-qualification
Many future homeowners will begin with the pre-qualification pro-
cess. This will help you determine if you qualify for a loan before you
buy land. Make sure to have a good idea of what you would like to
accomplish with your loan before going in front of a loan officer.
SECTION 2 iStock.com/wutwhanfoto
14 Modular Home Builders Association2. Experienced Lender focus on is understanding the construction loan
Shop around and compare the experience of process and appraisal of the home.
your lending options. Ensure your lender is ex- “Sometimes clients really focus on the bells
perienced, especially when considering modular and whistles in a home that can drive the price of
construction. The modular construction process the home past the appraisal value,” Kris said.
may require more expenditures up front rather This can really hinder your ability to borrow
than doled out over a long period of time. because the house won’t compare out in the area.
For instance, that rare piece of granite that is
3. Know Industry Terms $8,000 in a kitchen versus $4,000 has no monetary
It’s important to go in understanding certain value in the appraiser’s eyes. Granite is granite.
terms that could confuse you. Same goes with oak hardwood versus a piece of
• Acquisition Cost: The cost of the land plus exotic wood that might be much more expensive.
the cost to build Homeowners should start to focus on these
aspects EARLY in the process. Many get tripped up
• Mechanic’s/Materialman’s Lien: A claim when they go for an appraisal on their property.
that may be filed by any entity that has “Many clients think just because they were
performed work or provided materials for approved for a certain amount they can spend that
your home. much, but that is sadly not the case,” Kris said.
• Title Bring Down/Date Down/Update: If you have an idea of what your budget is
Interim title search to determine that no ahead of time based upon appraised value it
claims have been filed against your property will make the construction loan process much
• Builders Risk Insurance: Insurance that may smoother. There is nothing worse than a letdown
cover damage to your structure from fire, at the final hour because the house didn’t
weather, or other catastrophes appraise out.
A wise man once said there are very few times
• Tear Down: Term to describe the demolish-
in history a code change meant the cost of the
ing of an existing house on a lot in order to
house will be less. What it costs to build in 2016
build another house in its place
isn’t what it cost to build in 2012. But by getting
• Lot Equity: The difference between what you your finances in order and working closely with
owe on your land and the current market your builder, you can be well on your way to your
value of your land. dream home.
• Draw Schedule: The approved schedule
from the lender for the disbursement of the
loan. The modular construction schedule
will differ from traditional construction.
Kristopher Megna with Dreamline Modular
Homes advised that two areas everyone should
Modular Home Buyer’s Guide 15Budgeting
& Financing
What Will My Modular Home Cost?
T
his is one of the most commonly asked home construction (base model, standard plan).
questions we receive, and before we This is the price to the builder, not to you. So if you
answer it, we will both need a little more get a quote directly from a manufacturer, that is
information. For starters, it really helps likely NOT the final cost of your home.
to think of the term “modular” as the construction MHBA represents dozens of different modular
process used to build your home, rather than a spe- home manufacturers and each has their own
cific type of home. When you hear “modular home” standard models and floorplans. Its best to re-
you should be thinking “modularly-constructed search several styles and plans that appeal to you
home.” As we discuss in our article “What’s in a before contacting a builder. Do you prefer a cape
Name?” a modular home must be built to the same cod or a rancher? Colonial or contemporary? And
local codes as a conventionally constructed home. obviously the size of your home impacts the overall
So when you ask “how much will my modular home cost. We have provided many of sample images in
cost”, that’s just like asking a realtor “how much will our gallery.
my home cost? The realtor will say – it depends. Most homeowners are not likely to purchase
The same holds true for modular. a standard plan with no alterations or customiza-
tion. Working with your builder, you can talk about
Factors in the home cost: what options or changes you would like to make
to the standard plan and what the cost of these
Land upgrades are.
Your home has to go on a piece of land somewhere, Then the builder works with you on the site to
and depending on your location, lot size etc., your ensure all permits, zoning, and local ordinances are
land cost could make up a small portion of your being met, and arranges for the delivery and instal-
overall cost or a much larger portion. For the sake lation of the home. Delivery and installation are
of this article, we will leave the land out of the cost costs that a manufacturer may or may not include,
equation with the acknowledgement that it is not but they are costs to you, so be sure to ask.
typically included in the cost you are quoted for So before you click on our request a quote
your home. button to get a price, you will need to know a little
more about what you are looking for. When you
Cost of the Home think you have a good idea of what you want, go to
The modular home industry, generally speaking is our request a quote page and enter that informa-
comprised of two main types of companies that you tion. Your request will be sent to our network of
will likely encounter – 1) the manufacturer who actu- builders who do work in your region and they will
ally constructs a majority of your home in a quality follow up with you directly.
controlled location other than your home site, and 2)
the local builder or contractor you work with to have NOTE: Builders get many requests online from
your home delivered, installed and completed on people just curious about pricing but with no real
your home site. intent to build a new home – or in some cases, with
Typically, the builder or contractor is your no financial means to do so. If you are not sure how
primary point of contact for the home and the one much home you can afford, check out this article on
dealing with the manufacturer. As such, there is a Budgeting Basics for Modular Home.
price that the manufacturer charges for the basic
16 Modular Home Builders AssociationManufacturer: Champion
Modular / Excel Homes
Builder: Seacoast Modular
Homes Inc.
Stories: 2
Total Bedrooms: 5
Total Bathrooms: 2.5
Modular Home Buyer’s Guide 17Budgeting
& Financing
Ways a Modular Home
Can Save You Money
S
o you are in the market for a new home
and heard that a modular home might
be a less expensive option? Given that
modular homes are built with the same
materials and built to the same codes as conven-
tional site built homes it would seem that the costs
would also be the same. Generally speaking, the
costs are comparable, but there are a few ways that
a modular home can save you money.
Construction Loan – During the construction phase
of your home, typically you will have a construction
loan. Payments (or draws) are taken from this loan
to pay contractors, subcontractors and materials,
with the borrower (home owner) paying the monthly
interest payment. Once construction is completed,
the construction loan will be paid off with your per-
manent mortgage loan. One of the key advantages
of modular construction is the shorter construction
schedule. Construction of your home is occurring
at the same time as the foundation work. When
the foundation is completed, it is generally only a
matter of weeks before your home is set. It is not
uncommon for a modular home to be completed
two to three months sooner than a comparable site
built home, saving you the interest payments for
those months. The amount you save here depends
on the principal amount, the interest rate and
the draw schedule. For illustrative purposes, the
monthly interest payment on a $200,000 loan at 5%
is $833.33.
Materials/Waste - The U.S. Environmental Protec-
tion Agency estimated that a staggering 164 million
tons of building-related waste was generated annu-
ally in the United States. According to the National
Association of Home Builders (NAHB) construction
of a typical 2,000-square-foot home generally pro-
duces about 8,000 pounds of waste. That’s four tons
iStock.com/Zinkevych
18 Modular Home Builders Associationof waste going to our landfills for every new homes with a conventional builder. That can be a signifi-
built! A home built in a factory controlled setting cant amount when you consider as much as 25%
yields far better results. NAHB’s study concluded of the total cost of your home is materials expense.
that on average, 4 pounds of waste is generated per This is a 2-2.5% savings on your total cost alone!
square foot of new home construction (4lbs/sf). The Let’s use that 2,000 square foot home as an
typical modular manufacturer generates about half example to show the savings:
a much waste during the construction process.
Total home cost = $240,000
On a modular home site, you do not see the
row of dumpsters filled with drywall, lumber, and Construction loan = $200,000
excess building materials like you do on nearly
Cost / sf = $120
every conventional site. Excess lumber on a modu-
lar home is either used for additional wall bracing Materials cost = $60,000
while the home is being constructed in the factory,
Materials waste cost = $6,000
or stored and used for a future home. Additionally,
it is much easier and cost effective for the modular Materials disposal cost = $400
manufacturer to separate and recycle items that
Construction loan savings
often land in the same dumpster on site. As a result,
(2 months of interest) = $1,667
the hard costs of waste disposal are reduced.
Total cost savings with modular = $8,067 = 3.4%
Waste Disposal Costs - This might equate to
$300-$400 on a 2,000 square foot home. But there When you factor in workforce labor productivity (it
is also the upfront cost purchasing the material that takes fewer labor hours to construct a comparable
was wasted. It is not at all uncommon for site built size modular home), as well as overall energy ef-
contractors to order a little extra for all materials ficiency of the modular home once occupied (due to
delivered to the site. Why? Because they don’t want higher quality control and tighter building envelop),
to run short and have to stop the project and go it’s easy to see how a modular home can end up
order more. saving you 5-10% overall.
Obviously it is impossible to apply all of these
Materials Cost - While material waste depends assumptions to all modular homes, but this article
largely on which materials we are talking about, we does demonstrate the potential savings you can
will use a “waste” figure of 10%, meaning 10% of the realize with your new modular home.
materials you pay for do not end up in your home
Modular Home Buyer’s Guide 19WORKING WITH A MODULAR
Tips to Find the Right
Modular Builder for You
HOME BUILDER O
nce you’ve made the decision to build your home with
modular construction you may begin to ponder how to
find the perfect builder who will meet all your needs. If
you are feeling overwhelmed by all your choices, this
article will help guide you toward the perfect partnership to build
your dream home. The more educated you are about the industry,
the more questions and details you can get out of your first meeting
with your potential builder.
This is a relationship that should be considered very carefully
as you will be working closely together for the foreseeable future.
Understand what the builder will do for you.
A modular home builder’s primary role is as your project manager
and they will be the hub for the design, price and ordering of your
home from a trusted manufacturer. Many home builders offer
services beyond this scope and can provide a more turn-key
experience and handle all aspects of the project from permitting to
finishing touches. Other home builders may have a more hands-off
approach and guide you toward experienced vendors who will
complete your home for you. Whichever approach you would like
to take, make sure and ask your modular home builder the process
they will use.
Purchase land and have financing plan in place.
Having these important steps completed can make your meeting
with your potential builder more productive. Many homes are better
suited to certain plots of land and your builder can help guide
you in the right direction. Remember your builder will work as the
project manager for the building of your dream home so coming in
prepared will provide you with the best estimate possible in your
initial stage of building. Check out our gallery of homes to better
understand which style of home appeals most to you.
Research builder’s experience and skillset.
You want an experienced builder who has built the type of home
you want. Some builders focus on certain types of home within
certain price ranges and some may only build in certain parts of the
SECTION 3 country while others may build nationwide.
20 Modular Home Builders AssociationiStock.com/zlikovec
Initial research into your future builder can be • Is there a set timeline you can follow for your
simple and easy. A straightforward internet search home build?
will show their website, what associations they are • Is there any insurance if something should
members of, and the company’s rating with the Bet- happen while your home is being built in
ter Business Bureau. These are all important factors the factory?
to consider before setting up an initial meeting.
• What is the payment plan?
Don’t be afraid to ask questions. • Who will be your direct contact for the project?
Your first meeting with your potential builder is • Are there any warranties on your home?
critical in setting the stage for the rest of your home
building process. This is your first chance to ask all These general tips are just the first steps in your
the questions you can think of and get answers that home building adventure. While it can be intimidat-
will comfort you through the homebuilding process. ing, MHBA members are more than willing to
Feel free to delve deep into the complete process answer any and all questions you may have. Find
and ask about each stage of your home. Suggested a Builder here and reach out to start your home
questions include: building process today!
Modular Home Buyer’s Guide 21Working with a Modular
Home Builder
Latest Design Trends
A
fter getting financing and choosing Exterior
a lot to build your home, then comes While this year has seen the trend of monochro-
the fun part of actually designing matic color palettes on the exterior of homes
your dream home. With Pinterest instead of the use of contrasting colors, new home
and Houzz offering you a multitude of choices, owners are now leaning toward the use of mixed
the design process can be overwhelming. We’ve materials. Mixing stone, vinyl, wood and other
compiled a list of the latest design trends that types of sidings are becoming more popular and
may help narrow down and shed some light on creating more curb appeal.
choices that can make your life easier. Home owners are also beginning to hide
From the exterior down to the type of counter- their garage and in the process creating a family
tops in your bathroom, our members see steady entrance around the back of their home. This leads
trends amongst their clients. These trends lean to an alternate layout that flips the home.
more toward making life easier. “No one wants to
work for their home anymore they want it to be Floorplans
their retreat after work or during retirement years,” With garages being situated in the back of homes,
said Anthony Zarrilli with Zarrilli Homes. more families are entering through a rear foyer.
Manufacturer: Excel Homes
Builder: Dreamline
Modular Homes
Stories: 2
Total Bedrooms: 5
Total Bathrooms: 4
22 Modular Home Builders Associationuse the stairs while the additional master
will be used as a guest room.
Upcoming Trends
Ken Semler with Express Modular be-
lieves there will be a future trend toward
more technology in homes including
electronically opening your door, turning
on lights and adjusting your furnace
with smartphones.
These mudrooms become more of a hub for
shoes and other family property. This leaves
the front foyer home clean and open for guests
The more open floor plan is still widely
used. Whether the home is 700 sf or 3,000 sf,
home owners prefer a more open style with
less walls and more space.
Kitchens
Zarrilli Homes are seeing “Large open kitchens
with an island for congregation and ‘hanging
out’.” Home owners see cooking and hanging
in the kitchen eating appetizers and having a
glass of wine as part of the experience.
Many are also including a butler’s pantry in
their gourmet kitchens. Many see the kitchen
as the heart of the home and tend to stick to
more classic elements including a new trend
of white cabinetry. While white cabinets went
out of style for a while, many are leaning more
toward the classic look knowing in 20 years
they will still be in style.
Bedrooms and Bathrooms
MHBA members are seeing a trend toward
open air showers. This design keeps the
bathroom feeling open and airy. There is also
a trend toward more upscale finishes such
as hardwood flooring and designer trim in
master suites.
Many homes are featuring two master
suites on two floors for home owners looking
for longevity in their home. The second floor
master will be used until owners can no longer
Modular Home Buyer’s Guide 23Working with a Modular
Home Builder
Modular Home Gallery
Each modular home can be an exact replica or customized to meet each home owner’s needs. A luxury
of building your own modular home is the ability to create a space that is unique to you. See below for
different home styles.
Cape Cod Coastal
Cape Cod-style homes are more traditional, one- Coastal or Beach-style homes are often raised
room cottages. With a simple and symmetrical houses built on pier and pile foundations and are
design, they are usually one-and-a-half stories engineered to withstand severe coastal weather.
without a porch. A dominant roofline often They often include open-air spaces such as
incorporates dormer windows. wide porches.
Builder: Southeastern Development Co.
Contact the builder at http://southeasterndevelopment.net/
for more home details and floorplans. Builder: Old Harbor Homes
Contact the builder at http://www.oldharborhomes.com/
for more home details and floorplans.
Builder: Southeastern Development Co.
Contact the builder at http://southeasterndevelopment.net/
for more home details and floorplans.
Builder: VWV Construction
Contact the builder at https://www.vwvconstruction.com/
for more home details and floorplans.
24 Modular Home Builders AssociationBuilder: Garden State Modular Homes Builder: Zarrilli Homes
Contact the builder at http://www.gardenstatemodular.com/ Contact the builder at http://zarrillihomes.com/
for more home details and floorplans. for more home details and floorplans.
Colonial
A typical colonial-style home will feature a sym-
metrical façade, regularly-spaced single windows,
and sparse decorative accents over the front door.
Examples of colonial homes range from a simple,
square shape design to a grand estate such as
Thomas Jefferson’s Monticello.
Builder: Zarrilli Homes
Contact the builder at http://zarrillihomes.com/
for more home details and floorplans.
Builder: Zarrilli Homes
Contact the builder at http://zarrillihomes.com/
for more home details and floorplans.
Builder: Simplex Homes
Contact the builder at https://www.simplexhomes.com/
for more home details and floorplans.
Builder: Dreamline Modular Homes
Contact the builder at http://www.dreamlinemodular.com/
for more home details and floorplans.
Modular Home Buyer’s Guide 25Contemporary/Modern
A contemporary-style home reflects the
architecture of today.
Builder: Westchester Modular Homes Construction Corp.
Contact the builder at http://www.westchestermodular.com/
for more home details and floorplans.
Builder: Gaia Homes
Contact the builder at https://gaiahomes.co/
for more home details and floorplans.
Craftsman
A Craftsman-style home embraces simplicity and
natural materials. They feature open porches with
overhanging beams and rafter.
Builder: Dreamline Modular Homes
Contact the builder at http://www.dreamlinemodular.com/
for more home details and floorplans.
Builder: Dreamline Modular Homes
Contact the builder at http://www.dreamlinemodular.com/
for more home details and floorplans.
Builder: Millbrook Modular Homes
Contact the builder at http://www.millbrookhomes.com/
for more home details and floorplans.
26 Modular Home Builders AssociationBuilder: Saratoga Modular Homes Builder: Dickinson Homes
Contact the builder at https://saratogamodular.com/ Contact the builder at http://dickinsonhomes.com/
for more home details and floorplans. for more home details and floorplans.
Ranch/Single-Story
Ranch-style homes are perfect starter homes.
They are usually single story, though some may
include a finished basement and the design is
more wide than deep. Simple floor plans are usu-
ally divided into a living wing and a sleep wing.
Builder: Virginia Building Solutions
Contact the builder at http://www.vabuildingsolutions.com/
for more home details and floorplans.
Builder: Express Modular
Contact the builder at https://expressmodular.com/
for more home details and floorplans.
Builder: Hudson Valley Home Source
Contact the builder at https://www.hvhomesource.com/
for more home details and floorplans.
Modular Home Buyer’s Guide 27Builder: Dreamline Modular Homes
Contact the builder at http://www.dreamlinemodular.com/
for more home details and floorplans.
Traditional (Two & Three Story)
Traditional-style homes are pared done versions
of historic styled homes. They fit into any setting
including established neighborhoods or rural
areas. They tend to feature “traditional” floor plans
with formal living and dining rooms, along with
traditional comforts like a large welcoming front
porch and cozy fireplaces.
Builder: Atlantic Modular Builders
Contact the builder at http://www.ambmodular.com/
for more home details and floorplans.
Builder: Dickinson Homes
Contact the builder at http://dickinsonhomes.com/
for more home details and floorplans.
Builder: Dreamline Modular Homes
Contact the builder at http://www.dreamlinemodular.com/
for more home details and floorplans.
28 Modular Home Builders AssociationBuilder: Dreamline Modular Homes Builder: Dreamline Modular Homes Contact the builder at http://www.dreamlinemodular.com/ Contact the builder at http://www.dreamlinemodular.com/ for more home details and floorplans. for more home details and floorplans.
Working with a Modular
Home Builder
How to Prepare Your Lot
for a Modular Home
P
rospective homeowners choose modular • Lot price (you’ll need enough left over to actu-
homes instead of traditional houses for ally purchase your home)
a variety of reasons. You might have
already heard that “modular means Home Location
more,” but what does that mean? Your home will obviously go in a specific space on
• Modular homes are more resilient than HUD your property. Some factors to consider outside of
code and IRC site-built homes the obvious (like how far back you want to be from
• Modular homes are constructed in offsite the street or which direction you want the house to
factory settings; their production is under strict face) include:
quality control regulations • Slopes
• Modular homes are eco-friendly—they minimize • Trees
construction waste • Open spaces
With a little research, it quickly becomes clear • Streams
that modular homes present an ideal solution to lots • Driveways
of common home buying problems.
The Clearing, Leveling, Trenching, and General
I’ve decided I want a prefab house. What now? Digging Phase
One of the most crucial steps of bringing a prefab We like to joke and call it the general digging phase
house onto your property involves preparing because that’s what it’s about—clearing stuff out
that property. There are several steps that prop- and digging new spaces.
erty owners should take before moving a prefab Some lots need to be cleared of trees before a
house on-site. prefabricated home can be moved in. Others need
work to move away rocks and logs or trim down
The Quick Guide for Prepping Your heavy brush.
You’ll also need to work with some industry
Property for a Modular House
experts to:
Lot Location • Excavate a hole (for the home’s foundation)
Let’s address the basics of lot location before we • This process varies considerably from home to
bother going much further. If you have the luxury home, so you need to work with a professional
of selecting a property with the knowledge that you to help keep your property safe
want a prefabricated home, make sure you consider:
• Some lots require expensive and dangerous
• The route to the site (which can occasionally work; some don’t
make delivery tricky)
• Excavate in order to connect to a well and sep-
• Easements, deed restrictions, or other legal tic system or municipal sewer and water lines
factors that restrict your ability to build a
• Create optimal grades on the lot to cut down on
prefabricated home on-site
water risk
30 Modular Home Builders AssociationHandle Sewer and Water None of these things needs to be a problem
In some cases, homebuyers get lucky and score in your prefabricated home buying journey; but it’s
lots that already have municipal sewer and important to plan for them and understand that,
water lines available. Some only have one. Most sometimes, the process is slow.
have none.
This step is, by far, the one that homebuyers Your Chosen Modular Home Builder
underestimate the most. It can take quite a bite Can (and Will) Help
of time, money, and effort to hook up to public
water and sewer. The best thing a modular homebuyer can do to
You’ll also need to install a private septic prepare their property is contact their chosen modu-
system if you don’t have access to public lar home builder. The builder can help ensure that
sewage services. If you need to drill a well, it can the property is prepared for its unique approach to
be difficult to predict exactly how far even an home delivery. This way, everything comes together
experienced driller will need to go. and the property is ready for the actual construction
team that will be on it.
Modular Home Buyer’s Guide 31What is HERS?
CONSIDERATIONS W
ith all the talk about green rating systems and
programs, we thought we’d devote so time to trying
to explain what some of them mean to the average
home buyer.
“HERS” is the acronym for the Home Energy Rating System. The
HERS index is a nationally recognized system for home a home’s en-
ergy efficiency is measured. The HERS program also sets the standard
for home homes are inspected and scored.
The HERS index was created by an organization known as RESNET
(the Residential Energy Services Network) in order to give homeowners
and buyers a standard by which they could measure the energy ef-
ficiency of their home.
Home owners are also beginning to hide their garage and in the
process creating a family entrance around the back of their home. This
leads to an alternate layout that flips the home.
According to RESNET, the HERS score is similar to an automo-
bile’s miles per gallon. Only for homes, a lower HERS score is better.
A certified Home Energy Rater assesses the energy efficiency of a
home, assigning it a relative performance score. Here’s how it works:
A certified Home Energy Rater assesses the energy efficiency of a
home, assigning it a relative performance score. The lower the number,
the more energy efficient the home.
OTHER
SECTION 4
32 Modular Home Builders AssociationManufacturer: BonnaVilla -
a Division of Chief Industries, Inc.
Builder: Adam Berger
Development LLC
Stories: 2
Total Bedrooms: 3
Total Bathrooms: 2.5
The U.S. Department of En-
ergy has determined that a typi-
cal resale home scores 130 on
the HERS Index while a standard
new home is awarded a rating
of 100. So a home with a HERS
Index Score of 50 is 50% more
energy efficient than a standard
new home while a home with
a HERS Index Score of 130 is
30% less energy efficient than a
standard new home.
There are advantages of the
HERS score, according to Steve
Baden, the executive director of
RESNET. “Today’s new homes are
much more efficient in compari-
son to homes built just a decade
ago. These homes are more
affordable to maintain, comfort-
able, and have a higher value”.
To learn more about HERS
or RESNET, go here:
http://www.resnet.us/
Modular Home Buyer’s Guide 33Other
Considerations
Zero Net Energy Modular Homes
in 2020: The Right Time for
Requirements?
W
e hear a lot of talk about Zero Net What does Zero Net Energy mean?
Energy (ZNE) buildings. In Cali- The U.S Department of Energy defines a Zero Energy
fornia, all new homes are required Building (ZEB) as “An energy-efficient building where,
to be designed to demonstrate on a source energy basis, the actual annual delivered
zero net electricity usage beginning in 2020. Other energy is less than or equal to the on-site renewable
states, including Massachusetts, are currently dis- exported energy.” It’s important to note that this is
cussing whether to mandate similar requirements. also the definition adopted by California, making it the
But what will these new requirements mean to the most likely definition to be used across the country.
affordability of new homes? And what impact will With a nationwide shortage of affordable
they have on the modular construction industry? housing, particularly in California, won’t any added
MHBA talked with some of its members to get construction costs have a negative impact on the
their take on the subject. overall affordability of housing?
iStock.com/RoschetzkyIstockPhoto
34 Modular Home Builders AssociationThe Effects of ZNE Requirements on Price “Willingness to Pay”?
“We expect that our cost for each single family A recent report from the Rocky Mountain Institute
home we build in California to increase at least by estimates that the incremental cost to build a
$20,000-$25,000 to include items required to meet ZNE home ranged from 6.7% to 8.1% depending
Zero Net Energy code in California beginning in on the market. The report also analyzed how long
2020,” said Todd Kessler, CEO or U.S. Modular in it would take in 50 major cities for ZE homes to
California. “We expect additional costs for hom- pay back the added investment in efficiency and
eowners will include solar system (minimum cost solar. The payback period for the top ten cities
of $15,000), HERS testing, Energy Star appliances, ranged from 7.8 years in San Francisco to 11.4
solid core doors, and increased insulation.” in Chicago.
Obviously, the upfront purchase price of a new The same report also indicates a consumer
home will increase. But the overall long-term oper- “willingness to pay” premium for ZNE homes.
ating costs of the home should also be considered. From the report: This threshold compares the
According to the American Council for an Energy- incremental cost to build a ZE and ZER home
Efficient Economy, low-income households are (compared with an identical home that meets
often disproportionately burdened with utility bills local energy code) with the first cost premium
because the units are often older and inefficient. In customers have stated they’re willing to pay
Providence, Rhode Island, for example, low-income in consumer research. According to the latest
households spend 9.5% of their income on energy, NAHB research, 42% of consumers are willing to
compared to 4.7% for all households. pay a 4% premium for a green home, and 51% of
consumers are willing to pay a 4% premium for
Is ZNE Worth It? a ZE home, according to an Opinion Dynamics
What is the payback on this type of upfront invest- survey performed in California.
ment in energy efficiency, and might this require-
ment actually help families? Harris Woodward, The Challenges of ZNE Requirements
CEO of Maryland-based Finish Werks, thinks so. One of the biggest challenges with implementing
Woodward has made his reputation by building this requirement is the regulatory review process,
custom, energy efficient modular homes and thinks quality assurance, and compliance, both pre- and
reaching zero net energy with modular is “as easy post-occupancy. Are code officials equipped and
as checking the boxes.” ready to enforce ZNE if mandated?
“Using modular construction to over insulate “Many of the building departments and
and air seal our homes in a factory setting gets the factories are not quite sure what is required in
HERS Rating lower is STEP ONE”, he says. “Then, 2020 as they are still working on 2019 projects,”
once the envelope is tight, the HVAC system can Kessler said. “We will most likely run into is
drop in size substantially. We use high efficiency increased time at local building departments as
hot water heating and install Energy Star applianc- they review the 2020 building code requirements.
es and lighting (LED). Once you do that–a robust There will also be additional permits and fees
envelope w/ heating/cooling/appliances/lighting as solar systems require a separate permit with
that draw much less power - then you can spec a separate fees.”
much smaller Solar PV system to get to HERS 0, or Zero Net Energy homes look like a smart in-
Net Zero Energy.” vestment option for those wanting lower utilities
On a $40,000 upfront investment in ZNE, fi- and to live a more sustainable lifestyle. And with
nanced over 30 years at 4%, the additional monthly modular construction, that option can be more
cost would be about $191/month, with no added attainable. But until such time as building code
incentives from utility companies. Proponents officials and policy makers have the training and
suggest that monthly utility savings will equal or resources to effectively and fairly enforce these
exceed that amount. policies, ZNE should remain just that – an option.
Modular Home Buyer’s Guide 35Other
Considerations
How Does Modular Construction
Reduce Material Waste?
M odular construction is a less wasteful
way of building homes. Waste reduc-
tion is much easier using the modular
process than with stick-built homes.
Apex Homes: A Case Study
One of the homebuilders developing outstanding
waste reduction best practices is MHBA member
Apex Homes. Apex Homes has established a simple
36 Modular Home Builders Associationthrough a biomass boiler. Excess cardboard and
copper wiring are baled and resold to local buyers,
increasing the company’s revenue. That’s a win-
win! Apex ground up its excess drywall, which was
then utilized by local farmers.
Controlled Environment
How does modular construction facilitate better
recycling habits? According to Lynn, the key lies in
the controlled work environment. Because homes
are built in the same space day-after-day, recycling
stations can be set up and used consistently.
Another benefit of the controlled environment is
that waste from weather-damaged materials is
almost completely eliminated. Because the factory
is a climate-controlled environment, the building
materials are not being rained on or exposed
to other weather elements, resulting in fewer
discarded materials.
Waste Reduction By the Numbers
Lynn reports strong benefits from the systems
employed at Apex Homes. He points out that his
team fills two landfill dumpsters per month versus
site-built homes which average 1 to 2 dumpsters
per home. For context, Apex Homes averages 24
homes built a month. That is a massive reduction!
Environmental Impact
iStock.com/Lex20
By creating less waste, the modular homebuilding
model is much “greener” than traditional stick-
but innovative system for reducing construction built home construction. Environment-friendly
waste on their modular projects. innovations are popular now but for Apex
Homes, which has been in business for 30 years,
Recycling “green” is nothing new. “Our industry was green
The key is recycling. Apex Homes uses scrap before green was green.” Lynn says. Modular
materials for a variety of purposes to reduce waste. construction has long been the less wasteful
Lynn Kuhns, President of Apex Homes, describes it construction model compared to stick-built
as “concentrated effort to recycle what can be re- homebuilding. Through recycling and protecting
cycled.” He shares that many of the materials used building materials in a controlled environment,
in the homebuilding process have recycle potential. modular homebuilding reduces waste and offers a
Apex Homes uses scrap wood to heat their shop “greener” alternative for housing construction.
Modular Home Buyer’s Guide 37Other
Considerations
Do Modular Homes
Hold Up in Extreme Weather?
O
ne of the misconceptions about modular homes is
that they are flimsy and not as durable or resistant as
site-built houses. Due to this misconception, some
homeowners in regions vulnerable to extreme weather
may be hesitant to build a modular home.
As with other myths about modular construction, this concern
results from the common confusion of modular homes with mobile
homes. Trailers are indeed more vulnerable to extreme weather
because they are designed to be moved. Modular homes are not the
same as mobile or “manufactured” housing however. Home owners
considering building with modular construction in an extreme
weather region can rest assured for a number of reasons.
Modular Homes are Permanent
Unlike mobile homes, modular homes are as permanent as site-built
homes. Mobile homes are at higher risk because they are set on
temporary foundations.
Modular homes, on the other hand, have permanent foundations
to which they are secured, so there is no point of weakness between
your home and the ground that wind or water can exploit. In fact,
modular homes are indistinguishable from site-built homes of a
similar design. Unless you saw the house being installed, there’s
no way to tell. Manufactured/mobile homes, on the other hand, are
easily distinguished by the skirting hiding the foundation.
Sometimes mobile homes are permanently secured to
foundations, but they are still not generally built to the same
standards as site built or modular homes.
Modular Homes are Built to Code
Modular homes are built to the same standards and building
codes as site-built homes. This includes earthquake proofing
and any regulations that might be in place to ensure resistance
to hurricanes.
In fact, because each module is built in a factory, it is easy to
inspect and apply quality standards. Independent inspectors also
take a look at operations. Because the home is built in a controlled
environment, if extreme weather hits during construction time,
materials will not be warped or damaged while stored.
iStock.com/Jean-philippe WALLET
38 Modular Home Builders AssociationYou can also read
