• Modular homes are a type of manufactured housing where components of the home are built in a factory and then assembled on site. These homes offer a less expensive alternative to traditional stick-built homes and often have a similar look as well. While these types of homes have their distinct advantages, they also have common problems and complaints by owners. Knowing what you are getting into with a modular home will help you decide if it is the right choice for you before you shell out the money to buy one.
  
  

Land Not Included

• One problem with modular homes involves the initial purchase. When you buy a modular home new, the price you pay is for the home itself. The modular home does not come with land attached like traditional homes typically do. When you buy a house, the land it is on is generally included in the price. But when a modular home is purchased, you will need to buy land for it to be set up on. This is an entirely different transaction that may require separate loans. You should figure in the cost of the land with the price of the modular home to get the actual price. Looking simply at the price of the home may make it look like a drastically cheaper option, but adding the cost of land to the price may make it more in line with other stick-built homes in the area.
  
  

Lack of Choices

• Although some companies allow buyers to design their modular homes to their own specifications, more commonly the buyer is presented with a few options that the particular seller specializes in. In some cases there may only be a handful of options, which can be a complaint for some buyers who feel there are not enough choices to get the house they really want. Although they may be saving some money by going with a modular home, buyers are still investing a considerable amount of money and may not get exactly what they want.
  
  

Expensive Financing

• Financing on modular homes is sometimes similar to that of mobile homes, depending on the financing company you choose. Some companies treat modular homes like mobile homes and finance them in the same way. Some sellers finance through the company and will give property loans as opposed to traditional mortgages. Generally these loans have a 2 to 4 percent higher interest rate than comparable mortgages you can get on a traditional house. Over the life of the loan, this could cost the buyer thousands of extra dollars in payments.
  
  

Repairs and Maintenance

• Because of the way modular homes are manufactured and assembled, they may have additional problems when it comes to repairs and maintenance. Not all modular home builders make the same quality products. If you are getting a seemingly great deal on the home, it may be because it is made of poor quality materials or is thrown together by substandard builders, which can cause problems like rook leaks or energy inefficiency or cause other issues that may make the home less of a good deal in the long run.