Prefab houses are a very inexpensive method to have a fresh new home without having to deal with lengthy building delays. We cover all you need to know about prefabricated homes in this post, including benefits and downsides, prefab home costs, and more. There are two main types of prefabricated homes: factory-built and modular. Factory-built homes are assembled in a factory and shipped to your home address. They tend to be cheaper but also less customizable than modular homes. Modular homes are built by assembling pre-made house modules at the build site. This allows for more design flexibility but also increases the cost of modulating homes. Modular homes usually take less time to build than factory-built homes. Benefits of Prefab Homes The main advantage of prefab homes is their price tag. A typical factory-built home can be bought for as little as $150,000 and up, depending on its size and features. That's significantly less than what it would cost to build a conventional home (which typically runs between $250,000 and $500,000), so it makes sense to consider prefab homes when you want to get into home ownership but don't have much money saved up. It should also be noted that not every prefab home is created equal.