Build with Modular Construction

Building Better – Faster For Less Money

For centuries, traditional stick-built construction has followed the same timeline. First, the site preparation must take place. Then the foundation must be finished. And finally, the actual structural construction can begin. Materials must be ordered and delivered in stages because safe storage space is non-existent. And if the assembly is delayed by weather or lack of labor, then the schedules can be delayed even further. There are no shortcuts. One phase must be completed before another can begin. This typical step-by-step construction formula stretches out both the completion timeline as well as the loan draw process.

Modular construction, however, provides a new chapter in the history of construction and development. Because the modules are built off site in environmentally controlled building centers, the site construction and homebuilding take place simultaneously, reducing the completion time line by up to 30 percent. Areas such as Florida and the post-Katrina reconstruction zone, which are experiencing the high cost and short supply of labor and materials for on-site rebuilding, find that modular construction provides even more cost savings for them.

Modular housing’s rising popularity has increased the number of mainstream lenders looking to partner with modular builders. Banks and lending institutions recognize the value and benefits of modular construction, offering identical rates, terms and loan approval criteria for modular construction that they provide for stick-built. With traditional construction, the loan disbursements take place as each major phase of construction is finished. In contrast, the process has been refined for the speed of modular construction, significantly reducing the number of draws required from start to completion. Because of the shorter construction cycle and reduced inspections and draws, the total costs of modular construction loans are typically less.

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