How Do I Buy a Modular Home?

If you’re looking for a high quality home that’s built on a fast timeline, modular homes are perfect for you. Modular homes are built in modules in an efficient factory setting, then delivered to your property for final installation. They’re built according to the same codes as site-built homes, so you know your home is built to last with durable materials.

To help you in your homebuying process, we’re sharing our advice with help from Steele Broderick of Superior Homes, a modular and manufactured home retailer in Pennsylvania, as well as modular financing expert Dustin Brudnicki, Senior Vice President of Mortgage Originations Operations at offsite-built home lender Triad Financial Services. 

1. Think About Your Home Size, Location, and Budget
2. Visit a Modular Home Retailer
3. Get Financing from a Modular Home Lender
4. Choose Your Home and Select Custom Featured
5. Time for Home Installation and Move In!

To kick off your homebuying journey, think about your overall needs and wants for your future home.

Your desired home size will have the biggest influence on the floorplan you ultimately pick, so we recommend reflecting on key aspects of your home:

• Overall desired square footage
• Number of bedrooms and bathrooms
• Laundry/utility room or home office
• Walk-in pantry or walk-in closets 
• Extra areas for storage 

The next step is considering your options for buying land. Some modular homebuyers already have land before they visit a retailer, while others like to connect with a retailer before they purchase property.

Some retailers offer land-home packages, where land is included with the purchase of your home. If you’d like to buy land separately, connect with a real estate agent in your area who specializes in land purchases or check out websites like Zillow for land that’s currently on the market.

The next piece is figuring out your budget for your modular home. There are a few different things to keep in mind: the modular home, the land (if you don’t already own property), delivery services, and setting and finishing services.

It’s okay if you don’t know exactly how much to budget for each of these items at this point. Your local retailer will be able to provide a breakdown of the different options and how they factor into your budget. Use our estimated monthly payment calculator to break down how much you can budget per month. 

Independent retailers are an essential part of the process because you’ll ultimately purchase your home from a retailer, rather than purchasing directly from the manufacturer. 

From ordering the home to signing the contracts, you can expect a retailer to work closely with you to help ensure you’re getting a house you’ll love.

It’s a great idea to visit a retailer early on in your decision-making process to streamline your experience. The advantages of visiting a modular home retailer also include the opportunity to:

• Walk through model homes and get an idea of what styles and features you’re looking for.
• Learn about modular homes from an expert source.
• Go over your budget and find out which homes are the right fit.
• Discuss which homes will work well with your property if you already own land. (Learn more about how to find land for a modular home.)
• Find out what customization options are available for your future home.
• Have peace of mind working with a single contact throughout the purchase and installation process rather than working separately with a general contractor, sub-contractors, and more.

Modular homes are generally eligible for most financing types that are available for site-built homes.

Your monthly payment may include:

• Loan Principal
• Interest
• Property Taxes
• Homeowner's insurance
• Mortgage insurance depending on the loan type and down payment

There are many options available to you, expanding your choices and making the process easier. 

• Conventional Loans 
• Federal Housing Administration (FHA) Loans 
• Veterans Affairs (VA) Loans 
• U.S. Department of Agriculture (USDA) Loans 
• Fannie Mae and Freddie Mac Loans 
• Construction Loans 

Your modular home retailer will likely have a list of preferred lenders they recommend, allowing you to choose from companies they’ve already vetted. 

The loan application for modular homes is simple, and it’s comparable to the process for obtaining site-built financing. You can apply online or in person if the lender has a location near you.  

Make sure these three key factors are in order before you apply, which the lender will be evaluating as part of your application:  

• Low debt to income ratio
• Good credit score 
• Consistent work history  

Your loan application can be strengthened by putting down as large of a down payment as possible. The larger your down payment, the better financing options you may get. Also, putting down 20 percent or more of the total value may help you avoid having to pay private mortgage insurance.

When you’re ready to purchase a home, the retailer will walk you through every step of the way. Some people like to return to the retailer to officially purchase their home in person, while others prefer to go for an initial visit to tour models, and then complete the purchase over email.

Your retailer will help you select your final floorplan and place the order with the manufacturer. One of the most fun parts of this process is getting to pick out your personalization options for your new home!

Your floor plan will come with standard colors and materials for exterior and interior finishes. The standards can be a good starting point as you’re exploring the many options that will be presented to you. 

Each customizable element will usually come with “good,” “better,” and “best” options you can pick from. Typically, the highest quality, most premium finish will be the “best” option. 

You can also customize your home with layout choices like adding cabinets in the kitchen and making the shower larger in the primary bathroom.

More customization options for modular homes include:

• Selecting premium windows or siding 
• Including wood- or stone-style accent features
• Adding a garage, carport, porch, or dormers (small, roofed structures that stick out above windows)
• Upgrading to an ENERGY STAR® Certified home to reduce your impact on the planet and lower your energy bills

After your modular home is delivered to your property, it will be installed onsite. There are two stages of installing a modular home: setting and finishing.

Setting is when your home is set on the foundation. All modular homes are placed on a permanent foundation comparable to the foundation of a site-built home. You can choose to have a basement or crawlspace foundation.

During the finishing process, your home is prepared to be “turn-key ready” so you can move in and receive a Certificate of Occupancy from your local municipality. Sometimes it’s referred to as “trim out and finishing” – it’s when the finishing touches are put on your home!

The length of time for finishing can range from six to eight weeks for a ranch to three months or more for a larger, more complex home.  

The independent modular home retailer you purchased your home from most likely will have a few installation businesses they typically work with. The retailer will arrange the set and finish for you, so you don’t have to worry about handling this step!

Once setting and finishing are complete, your home is ready for move-in. It's officially “turn-key ready” with the utilities hooked up, driveway installed, HVAC system in place, and more. Now your vision has become a reality, and it’s time to relax and enjoy your space.

Start your homebuying journey and explore Champion’s variety of smart-built modular homes. Find the best Champion home for you, or contact a Champion retailer in your area. You can also contact our Homebuyer & Homeowner Assistance line Monday–Saturday 8am–8pm EST at 877-201-3870, or fill out our contact form and a member of our team will reach out to you. 

Note: Superior Homes is an independently owned and operated manufactured and modular home retailer located in Pennsylvania unaffiliated with Champion Homes. Superior Homes is a wholesale customer which retails homes built by Champion Homes’s Strattanville, PA, and Ephrata, PA, facilities to the public.

Champion Homes is not a lender and cannot provide financing to homebuyers. Champion Financing, LLC provides loan services for borrowers qualified through independent lending institutions.