The primary difference between modular and manufactured homes is that modular homes are held to the same local, state and regional building codes required for on-site homes. Manufactured homes are held to a federal code set by the Department of Housing and Urban Development (HUD) and have the ability to move from one location to another.
Modular Home Defined
A modular home is like a traditional home in that it’s placed on a permanent foundation. The house structure is partially constructed in a factory and shipped to the homeowner’s lot. The construction of a modular home must comply with local building codes and standards in the area where the home will be placed.
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Modular homes come in all shapes and sizes. In many cases, it’s hard to tell the difference between a modular home and a traditional stick-built home. Similar to standard homes built on-site, modular homes fluctuate in value with the traditional housing market.
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Most banks and mortgage lenders offer financing on modular homes, which means buyers will have a more diverse range of options when it comes time to purchase their home.
Manufactured Home Defined
Often called a mobile home, a manufactured home is built in a factory or warehouse in accordance with building codes set forth by HUD. The homes are transported from the factory to the home site, either in sections or as a whole, and installed on either a temporary or permanent foundation. In most cases, they’ll be permanently affixed.
Modern manufactured homes can come in three general floor plans:
- Single-wide: A home built as one long section.
- Double-wide: Two sections joined to make a larger home. This model is popular with first-time home buyers.
- Triple-wide: A less common model with three sections joined together for a larger, more spacious home.
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Rocket Mortgage® now offers financing for manufactured homes built on permanent structures after June 15, 1976. This is the date the HUD code setting federal safety standards on manufactured houses went into effect. We’ll get into HUD code later on in the article.
Modular And Manufactured Vs. Mobile Homes
The terms “mobile home” and “trailer” are often used to describe modern manufactured homes, but the terms are a little outdated. Manufactured homes are typically referred to as mobile homes because manufactured homes are built in a factory and don’t have a permanent foundation. Rather, they’re constructed on a steel chassis that can be affixed to land.
Manufactured homes can also be transported from one place to another, so they’re considered “mobile” in nature.
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