As an expert in the housing industry, I am often asked about the differences between modular and manufactured homes. While both types of homes are considered prefabricated, there are several key distinctions that set them apart. In this article, I will delve into the unique characteristics of modular and manufactured homes, and explain why these differences matter for potential home buyers.
What is a Prefabricated Home?
Before we dive into the specifics of modular and manufactured homes, it's important to understand what makes a home prefabricated. Simply put, a prefabricated home is one that is built in a factory and then transported to the site of construction.This method of construction offers several advantages, including faster build times, higher quality control, and reduced costs.
The Basics of Modular Homes
Modular homes are built in sections or modules in a factory and then transported to the owner's land where they are assembled on a permanent base. These homes must comply with local building codes and regulations in the area where they will be located. This means that modular homes are subject to the same standards as traditional site-built homes. One of the main benefits of modular homes is their ability to be customized to match popular home styles. This means that buyers can choose from a variety of floor plans and designs, including small houses or two-story colonial homes.Visually, modular homes look very similar to traditional site-built homes, making them a popular choice for those looking for a more traditional aesthetic.
The Ins and Outs of Manufactured Homes
In contrast, manufactured homes are built entirely in a factory and transported to the site as one complete unit. These homes are built on a fixed steel chassis rather than a permanent base, which allows them to be easily relocated if needed. Manufactured homes are built in accordance with the HUD Code and are subject to strict quality control measures. While manufactured homes may look similar to modular homes, there are some key differences in the way they are built. For example, manufactured homes are not required to comply with local building codes, which can vary greatly from state to state.This means that buyers may have limited financing options for manufactured homes, as many banks and lenders only offer loans for homes that meet specific building codes.
Financing Options for Modular and Manufactured Homes
When it comes to financing, modular homes have a clear advantage over manufactured homes. Because they are built on a permanent base and must comply with local building codes, most banks and lenders offer a variety of financing options for modular homes. This means that buyers have more flexibility when it comes to securing a loan for their home. On the other hand, financing options for manufactured homes can be more limited. While some lenders do offer loans for manufactured homes, these homes must meet certain criteria, such as being built on or after June 15, 1976 and having a HUD label.Additionally, the value of a manufactured home may depreciate over time, similar to that of a car, which can make it more difficult to secure financing.
