Because the demand for modular homes has seen exponential growth over the past decade, more and more home mortgage lenders are seeing this market as a very lucrative one. They make no distinctions between modular homes and stick-built ones, and are willing to offer modular home mortgages at competitive rates. And because modular homes are often less expensive than traditional homes of the same square footage, a modular home mortgage can be less expensive than a traditional home mortgage as well.

Why Modular Homes Cost Less
What makes a modular home less expensive than a similar traditional one? First of all, modular homes are built from modules, or "building blocks" produced in clean, climate-controlled factories. The module's production never stops because of inclement weather, and the modules themselves are never exposed to weather-related damage.

The assembly-line production of the modules allows their manufacturers to buy supplies in bulk, qualifying for significant discounts. Because the macular homes are ordered in advance, the manufacturer knows exactly what materials, and how much of them, need to be purchased, so there is almost no waste involved in the module production. The larger parts of the modules are precisely cut by computer regulated machines, again reducing waste. The economies practiced at the factory all contribute to the lower costs of a modular home, and a lower modular home mortgage.

Building Your Modular Home
The finished modules are delivered to the building site where the modular home builder will have dug and poured the specified foundation, and will have a crane waiting to begin lifting the modules onto the foundation. The constructing crew will use fasteners include with the modules to attach them both to the foundation and to each other in the correct sequence. Because there is absolutely no measuring or cutting required, the construction of a modular home goes far more quickly than that of a traditional home. Lower construction labor costs translate to a lower modular home mortgage.

Your modular home will have to meet all the state, Federal, and municipal standards that apply to traditional stick built homes, but its wiring and plumbing will have been inspected at the factory by a certified inspector. You'll essentially be buying a home which you know in advance will meet all the safety standards. This may not lower your modular home mortgage payments, but it will save you time spent waiting for inspections.

The speed and precision with which modules are manufactured; the discounts which the manufactures can get for buying materials in bulk; and the need for a smaller construction crews for a shorter amount of time all result in a lower modular home mortgage than you would expect for a similar traditional home.