What is the difference between modular homes and stick-built homes? Modular homes are built just like any traditional stick built homes except they use modules that are built in a factory and then put together on site. The modules are picked up off the carriers by a crane and placed on a foundation. Both must be built to meet the same state and local building code requirements. In essence, modular is just a different construction technique. Modular homes typically have 30% more lumber and higher insulation values than stick-built homes. Modular homes appreciate and gain value in the same way traditional homes do. Modular homes are deeded to the property. They are financed, taxed, and insured the same as a stick built home. Once a modular home is complete, it is extremely difficult to see the difference between a modular home and a traditional stick built home. What is the difference between modular and mobile homes (double-wide, single-wide)? Mobile homes are built according to the Federal HUD Building Code. Mobile homes are built on a non-removable steel chassis and have limited design options. Mobile homes are classified as personal property for financing, taxes, and insurance. Mobile homes depreciate in value. A modular home is NOT a mobile home. See previous FAQ for description of modular home. What is the difference between an on-frame and off-frame modular home? Off-frame modular homes are lifted off the transportation carriers by a crane and placed on a foundation. Onframe modular homes have a permanent steel beam chassis and are built to state and local building codes instead of Federal HUD Code. An on-frame modular is closer to a mobile home than a modular home you can bolt the axles, wheels, and tongue back on to move it. On-frame modular homes are much cheaper than off-frame modular homes and do not require a permanent foundation. Lenders and appraisers may have difficulty classifying it as a modular home. Silverpoint Homes only sells off-frame modular homes. What are the advantages to a modular home compared to a stick-built home? 1) Cost a. Modular homes cost 20-50% less than comparable stick-built homes b. Reduced construction time means less interest paid on construction loan 2) Factory Environment a. Materials stay dry b. Employees are highly trained for specific jobs 3) Quality a. 30% more lumber than stick-built houses b. Typically have more insulation for energy efficiency c. Built on jigs for increased build accuracy d. Inspected by independent third-party 4) Time a. A modular home can be completed in 3-6 months vs. 9-12+ months for stick-built home 5) Convenience & Reduced frustration a. One source for all material selections b. Single point of contact c. Service & structural warranties What are the disadvantages to a modular home compared to a stick-built home? 1) Modular homes cannot be installed anywhere due to site access required by equipment 2) Customization is slightly limited FAQs Page 1
How much does a typical modular home cost compared to stick-building? Most of our modular homes will range from $75/sq.ft. to $90/sq.ft. A stick-built home with similar build specifications and options will range from $125/sq.ft. to $150/sq.ft. (or more!). The price range depends on the options, roof pitch, number of modules, etc. Open to above areas in two stories and cape cods do not count as usable square footage, however in determining a price, this area needs to be included. How long does it take? In general, it takes 3-5 months from the time of ordering until ready for move-in. This can vary depending on weather, contractor schedules, factory load, etc. Add an additional 1-2 months if we are finishing the second floor of a cape or 2-story. A more complex home will take longer. Be advised that the lending process before ordering can take 2-3 months, sometimes longer. What areas do you serve? We generally serve areas within two hours (about 100 miles) from our model home sales centers in Beaver, WV & Lincolnton, NC. We can install homes farther away, but it would need to be evaluated and priced on a case by case basis and may exclude certain items. For example, we may setup the home, but not finish the interior due to the distance. Silverpoint Homes is licensed in West Virginia, Virginia, North Carolina, & South Carolina. Do you finance? No. Financing should be done at the lender of your choice. Silverpoint Homes can refer you to a several local lenders that we have successfully worked with. You will need a construction loan for building the home and a mortgage when complete. You do not need to use the same lender for both loans. How does the financing process work? Once you decide upon a home and the options, we will write up a sales contract and provide you with an appraisal packet (diagrams, build specs, and options). The lender will qualify your finances and then request an appraisal of the home and land. For a construction loan, the lender typically will lend 80-85% of the total appraised value. In general, the land value will cover the remaining 15-20%. This means the closing costs could be the only out of pocket expense required. The initial down payment would then be paid from the loan. Can I exclude items for credit? Yes. However, certain exclusions will not save much money due to the factory s low material and installation cost. For example, excluding all flooring (carpet and vinyl) from a 1,500 sq.ft home would save less than $1,000. Can I change..? Can I get hardwood floors, metal roofs, granite counters, brick, stone? Our modular homes are very customizable from simple color options to different kitchen layouts to high-end options. Just ask your housing consultant. Some options will be direct from factory, while others would require local vendors. Do you build garages and/or decks? We can complete garages and/or decks. This can be added to the price at time of sale. Can a modular home be placed on a basement? A modular home can be placed on a basement. Each of our Sales Centers have different requirements for basements. WV customer must hire their own engineering firm and contractor to install basement. NC evaluated on individual basis. FAQs Page 2
What to look for when looking at modular homes? 1) Off-frame modular homes Off-frame modular homes are lifted off the steel frame carriers by a crane and placed on a foundation. On-frame modular homes have a permanent steel beam chassis and are built to state and local building codes. An on-frame modular is closer to a mobile home than a modular home. Onframe modular homes are much cheaper than off-frame modular homes and do not require a permanent foundation. Lenders and appraisers may have difficulty classifying it as a modular home. 2) Build construction Look at the walls and floor construction. Our homes are built with 2x6 sidewalls on 16 centers. Floor joists are 2x13 floor truss or 2x10 joists. Examine the cabinets and trim for quality materials, fit and finish. Review the brands and warranties for items such as shingles, siding, carpet, doors, and windows. 3) What is included in the price Make sure you are comparing apples to apples. Some dealers and builders will quote home only without installation, foundation, heat pump, appliances, etc. Make sure the build specifications are comparable. If the price is too good to be true, it probably is. Some builders may have costoverruns that they bill back to customer. Be very cautious if a dealer/builder changes the price significantly at closing. Is furniture, décor, or paint included? No. The furniture, décor, and paint in our model homes are displayed to give our customers an idea for what the home will look like once completed. Where are the homes built? Builder Location Models on Display New Era / New Image Strattanville, PA Beckley, Berwick, Freeport, Osceola R-Anell Homes Cherryville, NC Landon EV850 Handcrafted Homes Henderson, NC Salisbury Carolina Building Solutions Lillington, NC Atlantic Homes (Champion) Lillington, NC Holms Building Systems Robbins, NC Am I limited to choosing a home from your models? Absolutely not. We try to show a wide variety of homes, but we understand that we will not be able to have the perfect home for every customer on display. Use our website or catalogs to find the home that fits you best. We can even take ideas from different homes and merge them together to make a custom home. Can you build a floor plan from another builder that I like? In most cases we can custom design a modular home to be similar to other floor plans, including stick-built plans. We recommend finding a floor plan that you like from our wide selection and then customize to suit your needs. What type of warranty is included? The home includes a one-year service warranty and a 10-year structural warranty. Appliances, shingles, siding, hot water heater, heat pumps, etc. have warranties through their respective manufacturers. Do I need my own land? FAQs Page 3
Yes. A modular home is a permanent structure and therefore deeded to the property. In some special cases, a modular home can be placed on land that is not owned by the homeowner (ie. family land). However, this will be up to the lender and will require a different type of loan. Do you take trade-ins (double-wides, single-wides)? In some rare cases we will accept a trade. However, we do not pay top dollar for a trade-in as we do not build in an inflated price margin with our homes. To receive a higher price for your home, we can serve as a liaison between customers that call us looking for used homes and customers selling their homes. Why don t you sell double-wides or single-wides anymore? We have seen that a modular home offers such a significant financial advantage to our customers compared to mobile homes that we only sell modular homes. Can I work with a different Housing Consultant? Yes. For example, you may visit us when your Housing Consultant was not in the office or busy and someone else helped you. If you would prefer working with them, just let your initial Housing Consultant or the general manager know. We understand that sometimes personalities may clash or you simply feel more comfortable working with a particular person. Is it true that on-frame modulars are stronger? (This is a sales pitch we have heard) No. On-frame modular homes do have additional pier supports under the steel beam chassis it will have four rows of piers plus a few at the marriage line as compared to a single row at marriage lines in off-frame modular homes. More support piers does not make an on-frame modular stronger. The floor joists of on-frame modular homes are typically 2x6, as opposed to 2x10 or higher used in off-frame modular homes. The pier supports used in on-frame modular homes are usually stacked blocks versus mortared piers used in off-frame modular homes. What is the process to buy and build a modular home? Establish your budget We highly recommend discussing your finances with a lender first to understand how much you can comfortably afford. Some lenders refer to this as pre-qualification and it takes less than 15 minutes. Determine your housing needs Number of bedrooms and square footage. Ranch, cape, or 2-story? Any special features, such as fireplaces. Layout want bedrooms together or separate? Family room? Open? Pick your home Tour our Model Home Sales Center and look through our website and/or catalogs to find the perfect home for you. Keep in mind that we can modify the floor plan and also work from a custom design. Customize your home Once you have decided on home, you will customize it. This includes layout, color selections, trim, floor coverings, and exterior features. Some options will change the price and your Housing Consultant will develop the quote based on these options. Purchase Agreement & Obtain Financing Your lender will need the Purchase Agreement, floor plan, and exterior elevation. The lender will go through the approval process and request a pre-appraisal of the home on your land. The appraisal will help determine the amount you can borrow on the construction loan. Once approved, we will review your home again to ensure everything is correct. Down Payment & Building Permits With the down payment and approval of building permits, the construction process begins. Home is Built & Foundation Installed FAQs Page 4
While the home is being built at the factory, Silverpoint Homes will install the foundation. Delivery and Set Home is delivered to Silverpoint Homes and then we will schedule a setup date. The crane set usually takes just one or two days. On Site Finish Work & Utility Connections Silverpoint Homes and our sub-contractors will complete the interior and exterior. You will be responsible for coordinating bringing utilities to the home. Final Walk-Thru & Final Payment After we complete our work, we will walk through the home with you to document any minor problems or defects that are to be corrected. We hand the keys to you and you can begin to enjoy your new home. FAQs Page 5