Due to the current economic situation in America, many people are beginning to look for cheaper ways to pay for homes.

Not only is there still a high cost of traditional homes in the current market, there are many people who are taking jobs for much less than they are accustomed to just so they can work.

Even in the current economy homes are still at a premium, especially for first time home buyers and those on fixed incomes.

There was a need to find a better and less expensive way for people to realize their dreams of home ownership, which is what modular homes are now offering.

Prefabricated and modular homes have been increasing in popularity since at least the mid-90s and they certainly are much more stylish than they once were in the 1970s and after.

Many people buy their own lots and place a prefabricated or modular home there, but there are some manufactured home communities which also cater to those who own modular homes.

For those who own their own lot, having a modular home can be similar to building your own home. You can add on rooms including a basement and attic which is something you cannot easily do to a manufactured home.

You can even choose your size and build a home that is likely to be larger than you would pay for the same amount of space in a brick and mortar home.

The lower cost is one of the features which draw many buyers to prefabricated and modular homes.

Of course, there is also the fact they can buy a piece of land and place their homes on it without having to wait for a builder, subcontractor and all of the other necessities that encompass building a home from the foundation to the roof.

When you purchase a prefabricated home you have much more choices in the way the home is designed. Certainly if you can watch your home being built from the ground up you have the choice with an ordinary building, but the key factor is it must be new construction in most cases.

While a modular home is essentially new construction, you have many choices from which to make your selection.

The difference between prefabricated and modular is based solely on how the home is put together (piece by piece on the site or delivered directly from the factory). However, they certainly do have similar components and benefits.

While manufactured homes have their advantages, they do not match those of the prefabricated or modular home.

First and foremost, they suffer from depreciation just as a car does, but prefabricated and modular homes appreciate in the same way a brick and mortar home does.

They are sturdier and can be built to the specifications of the potential owners.

Financially, both prefabricated and modular homes provide home buyers with inexpensive options when they want to realize their dream of owning a home on a limited budget.