Both meet the same building codes, so for your land the choice comes down to cost, timing, financing, resale and whether a delivery truck and crane can reach your lot.

By Brittany Horner, Director of Marketing & Online Sales at Mitchell Homes

A stick-built home is framed piece by piece on the land where it will stand. A modular home is built in sections in a factory, then trucked to your land and lifted onto a foundation by crane. Both are built to the same building codes. Choosing between stick-built and modular homes depends on your land, your budget and the home you want.

Neither kind of home is reliably cheaper, so the way to compare prices is with complete quotes for your own lot. A modular home's sections can be built in a factory in weeks. The foundation, utility hookups and other work on your land still happen on site, as they do for a stick-built home, so a modular home isn't necessarily faster to build overall. A modular factory may also ask for large payments before the sections are delivered. If your lender won't pay until the sections arrive, you would have to cover those payments yourself. Whether a modular home resells as well as a stick-built one depends on its quality and on how buyers near you see modular homes.

At Mitchell Homes, we've built custom homes since 1992. Our homes are 100% stick-built, on your land.

1. What Is a Stick-Built Home?

A stick-built home gets its name from the "sticks," the lumber that makes up its wall and roof framing, which is put together on site. You'll also hear it called a site-built home. It's how most new houses in the U.S. are built.

Stick-built doesn't mean every part is made on your lot. Many builders use factory-built roof trusses, the triangular frames that hold up the roof. In a survey of homebuilders, 66% said they used them on new single-family detached homes in 2017. The house still counts as stick-built, because its walls are framed on site.

2. What Is a Modular Home, and Is It the Same as a Manufactured Home?

A modular home is a house built in sections in a factory, and it isn't the same as a manufactured home. The sections, called modules, leave the factory with their wiring, plumbing and heating already installed. They're trucked to your land, lifted onto a permanent foundation by crane, joined together and hooked up to utilities. Virginia's regulations call modular homes industrialized buildings, so you may see that term on paperwork there.

A manufactured home, still often called a mobile home, is also built in a factory, but under different rules. Manufactured homes are built to a federal code set by the U.S. Department of Housing and Urban Development (HUD). Modular homes are built to state and local codes instead.

Panelized homes are a third way to build, somewhere between stick-built and modular: wall, floor or roof panels are built in a plant and then assembled on your lot. Modular and panelized homes together made up only about 3% of the new single-family homes completed in 2025, according to the National Association of Home Builders' analysis of Census data.

3. Is a Modular Home Built to the Same Code as a Stick-Built Home?

A modular home is built to the same state and local building codes as a stick-built home, according to HUD.

A stick-built home is inspected on your lot by the local building inspector, in stages from the foundation to the finished house.

A modular home is inspected in two places. At the factory, an inspection agency approved by the state checks the work. Once the sections arrive, the local building inspector checks the work done on your lot. In Virginia, for example, state guidance tells local inspectors to check the foundation, how the sections are attached to it and to each other, anything built on site such as a porch or garage, and any damage from the trip.

In each of the four states we build in, an approved modular home also carries a state label:

In Virginia, each modular home is also registered for the wind speed it's built to withstand. Counties can require different wind ratings, and the home's rating has to meet your county's. Virginia's guidance tells local inspectors, for example, not to accept a home built for 90 mph winds in a county whose code requires homes built for 110 mph winds.

4. Modular vs Stick-Built Homes, Side by Side

A modular home also needs a road the delivery trucks can use and room on your lot for a crane. Modular sections can be wider than 8.5 feet, the widest load allowed on major highways without a special permit. A section that wide travels as an oversize load and needs a state permit. The road to your land also has to handle the turns, slopes and weight of those loads. The crane that lifts the sections needs firm ground near the foundation and enough room to work clear of overhead power lines.

5. Are Modular Homes Cheaper Than Stick-Built Homes?

Modular homes are not reliably cheaper than stick-built homes. Rocket Mortgage describes modular homes as considerably cheaper to build, while the National Association of Realtors says "individual buyers shouldn't expect that a comparable prefab house will be cheaper than a site-built house." Because the sources disagree, the comparison that matters is two complete quotes for the same house on your land.

A modular quote needs the closest reading, because the price of the home may not cover much of the work around it. Depending on the maker, these items may be priced separately or left to you:

• The foundation
• Electrical, plumbing and ductwork connections after the sections are set
• Delivery and the crane
• Permits, inspections and local fees
• Site preparation and utility hookups
• Upgrades and layout changes
• Sales tax on the components, in some places

Clearing, a driveway, and a well and septic system or utility hookups cost money whether the house is framed on site or set by crane, so make sure both quotes include the same site work. Our guide to building on your lot in Virginia walks through site work and permits step by step. If you're still deciding on a piece of land, start with Is Your Land Buildable?

6. Are Modular Homes Faster to Build?

A modular home is faster to build at the factory, but it isn't necessarily faster overall, because the work on your land takes time for both kinds of home. The real estate site HomeLight reports that a modular home's main sections can be finished in weeks rather than months. Because they're built indoors, weather doesn't delay them.

Several steps happen on your land for both kinds of home: permits, site preparation, the foundation, utility hookups and inspections. A modular home then adds the delivery, the crane lifting each section onto the foundation, and the work of joining and finishing the sections. Builders don't all start their timelines at the same point. One may count from the permit and another from the day work on the foundation starts, so two quoted timelines may not cover the same work.

7. Can You Customize a Modular Home?

You can customize a modular home, but the design needs to be settled before the factory starts building the sections, because the walls, wiring and plumbing are installed at the factory. Modular manufacturers often have several floor plans you can choose from and adjust. Many also work with architects who can adapt a plan. Each section has to be narrow enough to travel by road, so the manufacturer divides your floor plan into sections that fit on a truck.

A stick-built home is framed on your lot, so the layout doesn't have to be fixed in advance for a factory. Each builder sets its own cutoff for changes.

8. Do Modular Homes Appraise or Resell for Less?

Modular homes don't automatically appraise for less than stick-built homes. What a modular home sells for, though, can depend on how buyers near you see modular homes.

An appraiser values a home mainly by comparing it with similar homes that recently sold nearby, called comparable sales. Fannie Mae, whose guidelines many mortgage lenders follow, doesn't count a modular home as manufactured housing, the category that includes mobile homes. Its appraisal guidelines say comparable sales for a modular home are chosen generally the same way as for a site-built home. The comparable sales don't have to be other modular homes, so the appraiser can use stick-built homes that sold near you. Sales of other modular homes nearby still help where they exist: the guidelines say they generally make the appraiser's opinion of value more reliable. The guidelines also require the appraiser to address how marketable a modular home is, meaning how readily it would sell in your area. That's where local buyers' views of modular homes can come into the appraisal. And because quality can make a large difference in the value of a factory-built home, the appraiser has to look closely at its quality.

Real estate agents disagree about how modular homes do at resale. Sara Holland, a Realtor who has worked with modular buyers and sellers in New Hampshire, told Boston.com in 2021, "For resale, they're valued the same as stick-built." Randy Reeds, an agent with more than 40 years in Grand Rapids, Michigan, sees it differently. He told HomeLight, "Most people don't know the difference between modular and a steel-frame mobile home," and, "The connotation is the same, and this tends to negatively impact resale value."

In the experience of our CEO, Scott Sleeme, and executive vice president, Deven Sellers, a stick-built home appraises higher, as they explain in our FAQs. We haven't found a national study that settles the question either way, so the best evidence is local. An agent who sells homes in your area can tell you how recent modular sales compared with stick-built sales nearby.

9. Can You Finance a Modular Home the Same Way as a Stick-Built Home?

You can finance a modular home with a construction loan, the same kind of loan most buyers use to build a stick-built home on their land. The difference is timing: a modular factory may want large payments earlier in the build than a construction loan usually pays out.

A construction loan doesn't pay out all at once. The lender pays your builder in installments, called draws, as each stage of the work is finished. It may also require an inspection before releasing each draw. Some construction loans turn into your permanent mortgage when the house is finished, and others have to be paid off with a new mortgage at that point. Construction loans are also harder to qualify for than a regular mortgage. Lenders usually want a higher credit score and less debt compared with your income, and some construction loans require 20% down.

With a modular home, much of the house is built at the factory before anything reaches your land, so the factory may ask for large payments up front to cover materials. A Center for American Progress paper on modular building for affordable housing found that construction lenders often consider those upfront payments too high to fund before the work is on site. Instead, they may lend only once the modules arrive. If your lender works that way, any payment the factory wants before delivery would have to come from you.

10. Which Is Better for Your Land, Stick-Built or Modular?

Neither stick-built nor modular is better for every landowner. Which one fits depends on your county's rules, how easy your lot is to reach, how long you want to keep making design changes, how your build will be paid for, and how buyers near you see modular homes.

11. What Should You Ask a Builder Before You Choose?

Ask each builder what its price includes, how the build is financed and whether the price is protected. That's the advice Scott and Deven give buyers comparing builders, and they also tell buyers to "set the price per square foot aside." A price per square foot doesn't show which work a price includes, so two builders' figures may not be comparable.

Ask every builder:

• Is the home stick-built or modular?
• What does the price include, line by line, and what will I pay for separately?
• Can I have your payment schedule in writing, and is any deposit refundable?
• How do your buyers usually finance the build, and does your payment schedule work with a construction loan?
• Is the price protected, and for how long?
• When is the design final, and what does a change cost after that?
• When does your timeline start, and what has to happen before it?
• Who inspects the work, and at which stages?

Ask a modular company as well:

• Will you visit my lot with your crane operator to confirm the delivery truck and crane can reach it?
• Who arranges the oversize permits for the delivery?
• What wind speed is the home built for, and does that meet my county's code?

Scott and Deven's last piece of advice is to ask each builder "where their buyers get surprised, because a builder who will tell you that is giving you what you need to budget accurately."

12. Building a Stick-Built Home on Your Lot with Mitchell Homes

Mitchell Homes is a stick-built builder. Every home we build is framed on site, board by board, on your land. Each one is constructed with the same care and attention as if it were for the builder's own family. Like many builders, we use factory-built roof trusses on most of our models. You can watch a home being framed in the Framing episode of our Construction Conversations video series.

For a landowner comparing the two methods, building with us works like this:

• Your lot: Because we frame on site, no house sections have to be trucked in as oversize loads or craned onto your foundation. Building permit service is included. For an administration fee, we can also arrange clearing, a well and a septic system for you and add them to your agreement.
• Your price: You can see our base price for each plan on our floor plans page once you choose your county. A well and septic system aren't included in the base price. Their cost varies with well depth, soil conditions and system design, and our Behind the Build episode on wells and septic explains what drives it. Our pricing is also protected for 150 days, a separate commitment from our build timeline.
• Paying for the build: Through SimplyMitchell, we offer stick-built homes with no construction loan costs, no down payment, and covered closing costs for qualified landowners. We fund construction ourselves, so there are no construction loan draws to arrange and no construction loan interest during the build. When your home is finished, you close on your mortgage through our lending partner, CrossCountry Mortgage.
• Changes: You can change anything at no charge up to and including your plans and selections meeting. That's the meeting before your contract where you settle your floor plan and selections, and after it your plans go out for permitting. A change after that meeting goes through our late change process: you pay the price of the change plus a late change fee that covers redrafting your plans. Simple color changes are usually free if nothing has been ordered.
• Plans: You can personalize any of our 40+ floor plans with structural options, alternate layouts and more than 40,000 interior and exterior selections at the design studio, or bring your own plans.
• Timeline: Our goal is 150 days or less to build your home once the footing is dug. The footing is the concrete base the foundation sits on. Your plans and selections meeting, your contract and permitting all come before the footing is dug, so they aren't part of the 150 days.
• Inspection and warranty: A third-party inspection before closing is included. Our Included Features page shows what else comes with each home. A new home built with us comes with our 10-year Quality Builders Warranty backed by Liberty Mutual, with 1-year workmanship, 2-year systems and 10-year structural coverage.

13. Frequently Asked Questions About Stick-Built and Modular Homes

Is a modular home considered stick-built?

A modular home is not considered stick-built. Stick-built means the house is framed on the site where it stands, while a modular home is built in sections in a factory and then delivered.

How can you tell if a house is modular or stick-built?

The quickest way to tell if a house is modular is to look for its state label, such as a Virginia Registration Seal or, in Maryland, a green certification label usually found under the kitchen sink. The table in section 3 shows the label for each state we build in. A manufactured home carries a HUD certification label instead. If you can't find a label, the local building department's records can help confirm how the house was built.

Can you get a mortgage on a modular home?

You can get a mortgage on a modular home. If you're building one on your own land, you'll usually need a construction loan first, and section 9 explains how its payments work. Once the home is finished, it can be financed much like a site-built home. Conventional loans work, and Rocket Mortgage says the FHA treats modular homes the same as stick-built housing. Veterans United confirms that modular homes qualify for VA loans.

Can you put a modular home on any lot?

You can't put a modular home on every lot. Some counties and HOAs don't allow modular homes, so check your county's zoning and any HOA covenants first. The lot also needs a road a delivery truck can use and room for a crane, as section 4 explains.