A Complete Guide on Buying a Prefab Home

Instead of going for a typical, traditional home, a lot of people opt for prefabricated houses. These homes are manufactured in one place and then transported to another. Their biggest strength is the fact that they are mobile, so you can basically move your home wherever you want.

Moreover, they can be customized to suit your style and they are entirely self-sufficient. If you decide to move by the beach or to live on a mountain top, you can bring your home with you!

We are going to help you better understand prefab homes and how to buy them. Make sure to stick around to learn more!

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Types of Prefab Homes

Prefab homes are not necessarily only ready-made homes that you can purchase and place wherever you wish. There are three main types of prefab homes:


Modular homes involve making different parts of the house indoors without actually being on the construction site. The parts are made before being assembled at the desired location.

Not only can they be assembled on-site, but you can also customize certain parts and add a personal touch. Modular homes are usually found in planned communities.


These homes are also known as mobile homes because they are firstly assembled and then moved to the desired piece of land. They are made in different sizes, and you can modify them any way you want.


Panelized homes are pretty similar to modular ones, except that they have panels instead of modules. These panels are usually walls transferred to any location and then put together. You will even get instructions on how to assemble your home. This is kind of like buying a new shelf or a table and putting it together!

A lot of manufacturers decide to combine the three types of prehab homes. Sometimes, this is done to create a specific design or simply because it is more convenient.

How To Buy a Prefab Home?

Buying a prefabricated home is relatively simple. Numerous companies offer such homes with varied features.

For example, some companies might focus on one particular type of prefab home, whereas others might be manufacturing anything you want. Furthermore, some manufacturers are willing to incorporate your ideas while others use their own plans.

One thing you should be careful about when buying a prefab home is the materials used. Make sure to research the manufacturer to see if their materials are high-quality and non-toxic!

Apart from manufacturers, another party involved in purchasing a prefab home is the lenders. Not many people can afford to buy a home without getting a loan, and sometimes getting a loan for a prefab house is not the easiest process.

The loan you are supposed to get for this is called a ‘construction loan.’ You will have to follow your state’s guidelines and put in a down payment of about 20%.

Once you go through that process, getting a prefab home should not be an issue!


Getting a mortgage for any house is not an easy process, including prefabricated homes. There are various rules that you need to follow to get what you want.

Here are some basic guidelines that you need to be aware of when making a mortgage offer:

You Must Own the Land

Even though it might seem adventurous, you cannot exactly park your home anywhere you want. Your lender will want to know whether you have enough land in your possession to place your home there. If you do not own any property, the chances are you will not get a loan.

The House Must Be Fixed in Place

The home that you buy must have secured foundations if you want to get a regular loan. These cannot be metal posts or wooden frames, but you should consider poured foundation or concrete block foundation. This will make the entire process much easier for you!

The Home Must Be in Good Condition

You cannot just purchase a prefab home made in the 1980s or ’90s. Those homes are more likely to sustain damages, and they are not built to the same standards as more modern homes. There should be no structural and water damage, mold, plumbing issues, etc.

There Must Be a Heating Source

This one might seem odd, but your prefab home must have a heating source like a furnace or something else that does not use wood to operate.

Easy Access

The location of your prefab home is also important. It does not necessarily have to be far down in the suburbs, but it is certainly a great quality for your home to be remote. However, it should still have access to the most important stores, hospitals, etc.

The Property Must Be Hooked Up on Services

Since it is 2021, your prefab home must have electricity, water, heating, and other services. All of these must pass the government standards for your mortgage loan to be approved.

Prefab Homes Pros and Cons

Prefab homes seem like an excellent idea to some but a terrible investment to others. This depends on different factors and personal preferences. Here are some pros and cons for you to decide for yourself.


  • Some prefab homes are built within three months! The construction is not done on-site and using concrete, which makes the process much faster.
  • As factories purchase mass products in bulk, the materials for prefab homes are much cheaper. There is also less workforce requiring fewer hours. Furthermore, since all of the parts are made indoors, weather conditions do not affect the process!
  • Energy-efficient along with safety and stability


  • You must have a permit to purchase and own a prefab home.
  • You have to pay for the construction upfront. Thus, initial investments can be high.


Prefab homes can be an excellent option if you wish to customize your mobile home. Purchasing such a home is not tricky, but there are some guidelines that you need to follow. Make sure to research enough before making a purchase! Consider consulting a professional before arriving at a decision.