Mortgage Myth #9: You can’t build a home for under $450,000.
Yes, You Can Build a Home for Under $450K — Here’s How Our Clients Are Doing It for Under $325K
The idea that you can’t build a new home for less than $450,000 is one of the most limiting assumptions in today’s market.
But it’s flat-out wrong.
We have real clients right now building for under $325K — land included — in the Milwaukee suburbs.
Here’s how they’re doing it: modular construction.
What Is a Modular Home?
Modular homes are factory-built structures made with the same materials (and to the same building codes) as traditional site-built homes. They're delivered in sections and assembled on a permanent foundation — often indistinguishable from a stick-built home once complete.
They are:
- Built to local code
- Appraised like traditional homes
- Financed through standard construction or mortgage loans
- Eligible for VA, FHA, Conventional, and even One-Time Close construction financing
How Modular Differs from Manufactured/Mobile Homes:
| Feature | Modular Home | Manufactured/Mobile Home |
|---|---|---|
| Code Compliance | Built to local/state building code | Built to federal HUD code |
| Financing | Traditional mortgage/construction | Often limited; chattel loan, etc. |
| Permanent Foundation | Yes | Sometimes, not always |
| Appreciation Pattern | Like site-built homes | Often depreciates over time |
| Appraisal Treatment | Same as stick-built | Limited comps, lower ceiling |
Real Example:
A recent client purchased a buildable lot and contracted a modular homebuilder — total project cost under $300K. This included:
- Land prep and permits
- Factory-built structure
- Onsite set and finish
- Utilities, driveway, and inspection
Why It Works in 2024–2025:
- Modular builds are 15–30% faster than traditional
- Less labor cost = more affordability
- Appraisal comps are improving as more modular homes go up
- Builders have available inventory and land lists
This isn't fringe — it's smart.
Want to help your buyers get out of the resale rat race and into a brand-new home under $300K?
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Contact me to talk land + build strategies
→ Or forward this article to your agent or builder
If you're interested in seeing the other myths that we're attempting to clarify, check them out
here.
