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Learn how off-site open-panel framing eliminates municipal plan-check confusion, protects manufacturer window warranties, and secures conventional stick-built mortgage financing. We examine the critical structural and inspection differences between closed panel assemblies—such as Structural Insulated Panels (SIPs) that conceal wiring cavities—and factory open-stud panels that local building inspectors examine on-site alongside standard rough mechanical, electrical, and plumbing trades. Discover why delivering wall panels without pre-installed windows prevents transit racking, preserves square and level rough openings, and ensures local energy compliance without risking voided glass warranties. We break down the appraisal and financing realities of custom panelization, explaining why clear architectural blueprints appraise against custom stick-built comparables rather than depreciating modular boxes or metal-chassis HUD trailers. Finally, see how panelized compares to modular homes and explore how choosing a pre-engineered panelized home package guarantees seamless approvals across banks, building departments, and architectural review boards.Key Q&A Highlights from Episode 97
Q: Why are exterior windows not pre-installed into factory wall panels prior to jobsite delivery?
A: Pre-installing windows at the manufacturing facility risks racking the window jambs or twisting delicate sash mechanics during flatbed transit, crane rigging, and wall standing. Window manufacturers frequently void product warranties if a water penetration or operational failure is traced to jobsite handling distortion, making on-site installation by professional framers essential to guarantee that units remain plumb, square, and level.
Q: What is the code inspection difference between an open wall panel and a closed panel like a SIP?
A: An open wall panel consists of pre-sheeted dimensional wood studs with open interior stud cavities, allowing municipal building inspectors to physically inspect framing, hold-down anchors, rough plumbing, wiring, and insulation on-site before drywall. Closed panels, such as Structural Insulated Panels (SIPs), sandwich rigid foam between exterior OSB skins, concealing internal wall cavities from local inspectors and frequently requiring special off-site factory third-party certification stamps.
Q: Do banks require specialized financing programs for panelized homes compared to modular construction?
A: No, panelized homes qualify for standard conventional residential construction loans and permanent mortgages because they are permitted and built under the standard International Residential Code (IRC). Unlike modular or HUD-code manufactured homes—which often require specialized chattel loans, carry higher interest rates, or face lender portfolio caps—panelized packages appraise and finance under identical guidelines as site-built custom homes.
Q: Why do manufactured and modular homes experience higher market depreciation than panelized homes?
A: Manufactured and modular homes are perceived by appraisal markets as standardized, mass-produced factory units similar to vehicles, which face resale depreciation as newer model years enter the market. A panelized home is a permanent, architecturally unique real estate structure built on an engineered foundation, ensuring it appreciates alongside custom stick-built neighborhood comparables over time.
Q: When is a mobile crane legally or structurally necessary to assemble a panelized kit home?
A: While typical 1,500-to-2,000-square-foot panelized ranch homes can be walked off the truck and stood by a framing crew using a standard extended-reach forklift, steep hillside building sites or multi-story luxury plans require a mobile crane. Complex architectural layouts featuring heavy structural timber ridge beams, multi-pitch roof intersections, or 20-foot tall balloon-framed view walls mandate crane assistance to safely set heavy assemblies without over-stressing the framing crew.
Steve Tuma: I think it’s fair to claim that under some conditions, a home could be weather-tight in a matter of days. It’s also safe to say it might take a week or two, depending upon the actual design.
Host: Hello, everyone, and welcome to episode 97 of the Panelized Prefab Kit Home Building Show. With me today, as he always is, is the president and founder of Landmark Home and Land Company, a company which has been helping people build their new homes where they want, exactly as they want, nationwide and around the globe since 1993, Mr. Steve Tuma. Steve, how is it going, my friend?
Steve Tuma: It’s going great. Another great day to build a home. It’s always a great day to design and build a home at Landmark. So, yeah.
Host: You would say that.
Steve Tuma: Yeah, we’re doing a series of questions, right? This is the second series of clarifying online chatter or rumors or whatever on home building.
Host: Yeah, a lot of these are sent in by potential panelized homeowner-builders, and a lot of them are just floating around there on the internet. You just have to go grab them. But again, they’re all very relevant questions, which is why I want to give you all the time you feel the answers warrant. So if that takes us three, four episodes to do it, we’re going to do it.
So let’s get the ball rolling with this one, sent in very recently, and a potential customer wanted to know: Do the windows come pre-installed with the panels that are delivered on the build site?
Steve Tuma: This is interesting, because a lot of people look at that and say, “Oh, it’s pre-installed. It’s going to save me time.” And there are a couple reasons we don’t do it. Mainly, it’s windows can vary in cost significantly for the exact same house. If you want simple white vinyl, if you want colored vinyl, if you want walnut insides, if you want aluminum windows, whatever it is.
Our customer base is specific. They want to build a custom home and personalize it to their particular needs. So if they need something less expensive, they would go with a certain window. If they wanted something that’s more decorative, more feature-filled, they can spend more. But that’s their choice on where they get windows and the design and details of the windows.
Windows have a lot of details. It’s not just open it up and let the spring breeze in. There’s a lot of different hardware, there’s different hardware colors, there’s different exterior materials, different interior materials, different ways that they open and close, different ways that the actual mechanics of it are put together. So they can be pretty complex, so it’s better for people to look at the actual window they want, pick it out, and know that it works.
Also, with different energy calculations, you’re going to need different performance values for windows. In some places that are a little more extreme, they need a better-quality window to pass the energy calculations.
But there’s one main reason that we don’t pre-install them: if there’s a claim on a window to the manufacturer, a big thing that they always say is the window is not installed right. Well, with lifting a wall panel up and it getting shaken around, there’s a possibility that something gets a little bit whacked out of place. So that’s why we think it’s good to have a professional installer install it on-site. Make sure it’s level, make sure it’s square, make sure everything just works out right so that it’s put together properly. And that’s another key reason. Adhering with the warranties or guarantees that are there.
It’s the efficiency, and it’s decorative reasons as well—the general look of it—and it’s also budget control. If someone wants to spend more on windows, they can do so. If they need to control the cost, they can find a window that fits within the cost that they want to stay within.
So that’s why we don’t pre-install them. We want to work with people to get the right design, the right structural design, the right permit set of plans, and then they can work on details, the finishes—like siding, roofing, windows themselves—and make sure it fits the budget and the look of the home that they want. It’s an advantage, and the customer gets more of what they want that way. That’s why we have the system set up that we do.
Host: This next question kind of goes back to one we sort of hit upon on the previous podcast episode, and that’s just about you hear these companies on their websites talking about, “We’ll get you in your house in a matter of five days,” or something like that, when that’s just really unknowable. But a lot of companies are claiming that they’ll have a house weather-tight in just a matter of days, which is really vague sounding to me. But can that really happen?
Steve Tuma: Yes, it can. We’ve had customers that have had houses framed in two days, three days, four days. Now, generally, those are simpler designs. If you have a big mansion with a lot of corners and big rooflines, it’s probably not going to happen. But we have had people do that. In fact, one of our reviews said they did it in a day and a half or two days.
So it’s very possible, and part of that’s because we have a clear set of plans, we have an accurate set of plans, and it’s very easy for a good crew just to put it together.
Now, that being said, it’s been done. I wouldn’t necessarily make that a target. If it takes four or five days, a week, or ten days to do it right because your building site’s a little more complex or your house is a little more complex, I would say take the right time to do it. It’s not a race.
But yes, we have had people do houses very quickly, but it’s not something that we want to go represent that’s going to happen with everyone. I’ve seen that stuff: “Build your house in three hours.” It’s almost like the clickbait claims are more important than reality. We’re in the business of being accurate and authentic in what we tell our customers.
So the answer is yes, a house can be weather-tight in just a matter of days. The reality is you have to have the right conditions, the right house, the right crew to pull that off. That’s not going to happen every time. Most people will take a little bit longer to get it taken care of, to make sure it’s done right and not beat the crew up. You want to be safe on a site. It’s not a race. You do want to keep to a schedule.
We’ve had people do typical 1,500-to-2,000-square-foot homes in four days, five days, a week, sometimes a little bit longer. Sometimes the big, very complex homes—very architecturally detailed, a lot of wrap-around porches, a lot of steep roofs, maybe two or three stories—those homes can go ten days, two weeks, three weeks, maybe even a little more, depending on the complexity and the weather conditions at the time.
So we want to represent what’s realistic, not just the outlying freak event. So I think it’s fair to claim that under some conditions, a home could be weather-tight in a matter of days. It’s also safe to say it might take a week or two, depending upon the actual design of the house, building conditions, and the crew.
Host: Right.
Steve Tuma: But, you know, like I tell people, I wouldn’t make building a house a race. This isn’t something where you want to go to the cocktail party and be able to say, “Hey, my house was 23 hours faster than yours.” It’s like, you want to make sure it was built right, according to schedule, to the budget you want, and you get the house that you want.
Because there’s no reason to really race on something and then have something not right in the home that you want to live in for however long you choose to live there. So our idea is make sure that it’s built right, things are done right, and it’s done per code, it’s done per the plans, and it’s safe. You’re going to be living in there.
What I’ve noticed is sometimes when people take shortcuts, it bites them in the butt down the road. So it’s better to take each step methodically, make sure it’s done right, and then move forward.
But I think the gist of the question is, is it fast? And yes, our panelized home system is very fast. You have to have a good crew, the right designs, the right materials, and a very clear set of assembly plans, which makes it easier for people to get a qualified crew to put the home together as quick as possible.
Host: Right. I’m sure a lot of these representations of really quick home building—most of them are probably anecdotal anyway. You can take one guy who had his house air-tight in two and a half days—well, that’s great. It doesn’t mean that that’s going to be the norm. And I think you’re right: slow down.
Steve Tuma: It’s kind of like weight loss. I’m sure someone lost 10 pounds in a week. Did they keep it off, and what happened next week? And then how disciplined were they, and what’s the reality of your life? So there’s a lot going on in home building, and I would say have a controlled schedule with the right subcontractors, and you’ll get it done very quickly and still retain quality and still get the home you want. That’s very important.
But yes, we’ve had people build houses weather-tight in a matter of days. It actually happens a lot.
Host: Wow. That’s impressive, man. I have to say.
We’ve covered this a lot in the past, but I want to go over just a little bit again regarding permits and codes. Is a panelized home build project treated just like a standard stick-built home, or is it treated more like a modular home might be? What are your thoughts on permits and codes when it comes to panelized homes? You would know.
Steve Tuma: The codes are the same. Well, modular’s different. There’s the trailers, then there’s the modulars. They’re kind of designed and inspected in different methods where, supposedly, they’re inspected at the plant. I would say if they make that claim, go there and meet the inspector and talk to them about the inspections that they do on modular or HUD homes. If they’re there, they should be able to walk through it.
But the process about it is the code’s the same. We build to the IBC, IRC, whatever year it is that the building department requests. And yes, it’s treated just like a site-built home.
I’ve seen those comments online where people say, “Hey, my prefab was this.” Well, the word, like we’ve discussed, “prefab” can mean a lot. It can mean a trailer—a prefabricated trailer. That is a different code. So sometimes when people answer these general questions with specific answers to their specific situation and don’t make it clear, it can be very misleading.
So the code for a stick-built home is the same for panelized. It’s the same process. We’re just building the walls and trusses and other details off-site and bringing it in for a more controlled, budget-wise and schedule-wise build. So the actual process of going through building departments, the inspections, is exactly the same.
So what that is, is more of people not understanding the word “prefab.” So they use the word prefab as generically covering almost every building process out there. But the reality is it should be broken down by HUD home, modular home, and then the stick-built homes.
And that we fall within the stick-built homes, and we work all over the country and haven’t had a problem. Every once in a while, we’ll have a building department that doesn’t understand. They’re like, “Oh, that’s a prefab.” It’s like, “No, it’s panelized. It’s stick-built.” So we send them a little email saying, “Hey, this is how we build,” and they’re like, “Oh, okay, fine.”
Because where it gets into an issue is sometimes panelized can also be broken in some subsections. We have open panels. They are exposed 2×6 studs with the wall sheathing on it and window and door openings framed in, along with the header.
There are companies that do closed panels, like SIPs, which is basically a piece of OSB, some foam, and then another piece of OSB. Okay? So that’s a closed panel. They can’t inspect the inside of it. Ours is an open panel so that they can inspect the framing and then allow you to go through and do the heating, the plumbing, the electric, the insulation, and move forward. Where sometimes people ask about that is if it’s a closed panel where, for some reason, the exterior finish is on, all the mechanicals are on the inside, then the interior finish is on, it can’t be inspected.
But that’s a closed panel. Landmark Home and Land Company supplies an open, stick-built wall panel. So basically, the difference is with our system, we can follow conventional framing, we can follow conventional permitting, we can follow conventional inspection issues, so you’re not asking an inspector to do something that they’re not used to doing. So ours is extremely typical. It’s been going on for decades, if not longer.
So, yeah, the codes and permitting processes are exactly the same. And we’ve worked all over the country in a variety of different building departments, a variety of different building situations, and we’ve never run into an issue. It always works out. We’ve got a great system in our plans and the panelized home product so it’s easier for customers.
Host: Wel after 33 plus years I would imagine you guys have it pretty much down buy now.
Steve Tuma: Well, the thing about it is, occasionally—it’s kind of strange, but we’ll run into a building department. We just did about a month ago in Colorado where the building inspector didn’t understand building. And he’s like, “Oh, that’s one of these prefabs. You got closed panels,” thinking that we’re dragging a trailer in. But you look at the plans; obviously, it’s not a trailer. The design wasn’t possible to be done. But that person just didn’t understand. So what they did was right: they said, “Hey, can you clarify it for us?” We clarified it, and they’re like, “Hey, you’re ready to go. This is a stick-built home.” Like, exactly.
So we’re always available to help customers if, for some reason, they have a question. But questions like that are extremely rare, because we’ve got a great set of plans, and the codes are followed, so it’s easy for the building departments to review.
Host: Well, I’m sure a building code department person who comes out—I’m sure you don’t run into that all that often, thank God. I mean, the listeners should know that most of the people who are putting the permits together for your home build, they actually know what they’re doing. But Steve, I’m sure you’ve seen it all.
Steve Tuma: Now that you’ve said that, something weird will happen next week.
Host: Sorry about that. A self-fulfilling prophecy here.
Steve Tuma: Yeah.
Host: This is another one we’ve kind of gone over in the past, but I think it’s worth covering again a little bit: the appraisal of a panelized home. Do panelized homes appraise the same as a stick-built house would?
Steve Tuma: Yeah, they appraise exactly the same as a conventional stick-built home. They are a stick-built home. If one of our homes is put up, and you had a custom stick-built home of the exact design, people wouldn’t be able to tell the difference. The design process, the materials—it’s pretty much the same thing.
The reason this comes up again is the word “prefab.” Because prefab can also mean trailers—you know, the ones with the metal frames under it—and it can mean modular. And there are some jurisdictions that have different inspection processes. There are some areas that do not allow those types of homes. And the financing is different, and the stigma in the market over them is different. So if it is a manufactured home or modular, I believe it needs to be noted on the appraisal as it is a different building method. And from what I understand, it can affect the appraisal value.
It’s just because over time, people like a stick-built home. The values seem to hold better than a manufactured or modular home. Kind of the reason being, at least from what I can tell of it, is it’s kind of like a car. If you go buy a certain model year of a car, and then two years later you buy that same car, but two-year model newer later, which one’s going to cost more? The new one—the newest model year—where the older one, it’s going to be aged. And for some reason, the modulars and trailers are looked the same way, because I don’t want to call them generic, but they’re kind of standardized. So why would you pay more for a house that’s 10 years old and lived in when you can go buy the new one?
Yeah, so from what I understand of it and what I’ve seen is there’s depreciation.
Host: Yeah, it’s just like anything else: once it goes out the door, once you step foot in your new home, there’s going to be some—
Steve Tuma: Yeah, if it’s a modular or HUD home, that’s the case.
Host: Yeah, so…
Well, here’s another question that’s been coming up a lot over the years. I mean, a lot. This is one of the most asked questions out there. So let’s go over it just to clarify: Are panelized homes harder to finance than a stick-built home?
Steve Tuma: It’s the exact same process. Just as we discussed, it’s the same appraisal process: it’s appraised as a stick-built home. The bank will go through the same process with that.
Again, it’s different, like we kind of touched on just a few minutes ago: a prefab—the HUD home with the metal frame—it’s financed differently, from what I understand. Interest rates may be higher for a HUD home or a modular type of home. In some cases, you need specialized financing, from what I understand.
So the actual financing process of our panelized home is pretty much the same as a stick-built home. We get a set of plans. What people actually like with our process is our plans are clear and accurate, so the appraiser knows the dimensions of the room, how tall the house is, the look of the house, what the roof’s going to be, what the siding’s going to be, so they understand the features. Because we do have a complete set of plans, it’s easier for them to work on an advantageous appraisal. So it’s not just the panelized versus stick-built; it’s the Landmark panelized, where we go through and get a set of plans.
And if I could go one step further: it’s not just the financing. Sometimes there’s homeowners associations, architectural review boards, historic committees. So we go through to make sure that the plans are clear and accurate for those groups as well, to make the whole approval process work out.
A lot of customers don’t have financing. The ones that do work with financing, we’re able to get the plan sets and details together so that it’s a successful process for them.
So, yeah, I think the main thing that’s here—and I think why this question is asked so much—is there’s a lot of information just in people’s perceived general knowledge and what’s online where people feel they need to give an answer, so they give an answer, but is it accurate?
So, panelized homes—the Landmark panelized homes—are just like a conventional stick-built home. If someone says that they had a problem with a “prefab,” chances are it’s a modular or a HUD home—the ones with the metal trailer under it—because that is a different type of financing market.
And I think a lot of these questions, why the information is there, is someone will ask a general question, someone will feel they need to give an answer, but they don’t understand that there’s different ways to answer it on, “Hey, what’s the condition that you’re asking about?” Like, “Do we need a crane?” Well, yeah, if you’re on the side of a hill with a very challenging one, it’s good to have the strength of a crane. If you’re building on a simpler lot, you don’t need a crane.
So a lot of the questions that were asked in the last podcast, this one, and the next two that we’re going to be doing are, “How does it apply to you?” And that’s the key thing. And that’s why there’s so much misinformation online, as people feel that they need to give an answer instead of saying, “Hey, what are the conditions you’re building in? This is why it would make sense.” And we’re always available to help people in their preliminary stages to find out, “Hey, what do I need so I could work my budget, so I can find these people?” And that’s a big part of Landmark Home and Land Company design and customer support experience that we provide.
Host: Well, once again, informative as heck, and your time is always—just you answering these questions, I always appreciate it, Steve, and I’m sure our listeners do. So anyway, that’s going to do it for this edition of the Panelized Prefab Kit Home Building Show. But before we let you go, as always, Steve, please let our listeners know how to find out more about Landmark Home and Land Company.
Steve Tuma: The best thing to do is check out our website. We have a complete website with plans, discussions, videos, these podcasts, and you can see it at LHLC.com. That’s kind of like the initials: Landmark Home Land Company. The company is really Landmark Home and Land Company, but it’s just LHLC.com.
And like I say, they can look at plans, they can watch videos, they can see different details, and they can inquire on a specific plan. They can find a plan, send a message, say, “Hey, can you tell me about this house? I want to build in Ames, Iowa, or in Orlando, Florida,” wherever it may be.
They can also just send a direct email, or they can call at 800-830-9788, and Mike will answer the phone. They can have a discussion on their project, find out what’s going on, tell him about their land, tell him what their goals are, tell him when they want to start building, and go from there.
We are very proactive. We do answer our phone, and if for some reason you do get our voicemail, please leave a complete message—name, phone number—and we will call back right away and help a customer along with a cool little conversation, just to get to know each other and get to understand their project to see how we can help.
And then if someone finds that they want to talk to me on something deeper, more specific, I’m always available on my direct cell phone at 708-205-2043. Again, that’s 708-205-2043. We’re here to help. It’s a lot of fun.
Host: Fantastic, and there you go. Episode 97 of the Panelized Prefab Kit Home Building Show is now in the can. Steve, thanks for coming on again, and thanks to all of our listeners for just being here, you guys. We really appreciate it, and we hope the information we’re putting out there has been helpful.
Steve Tuma: Yeah, it’s another fun one. It was really cool. A lot of cool stuff in there, and I hope people see the differences, the different angles that I’ve shown so that they can understand why a certain answer makes sense.
Host: Yeah, and you make things fun. You make things informational, but also, yeah, it’s a good time, these podcasts, so…
Anyway, for Landmark Home and Land Company President Steve Tuma and myself, y’all have a great week, and we will see you next time. Thanks again, Steve.
Steve Tuma: Thank you. It was a lot of fun. Thank you.
