Manufactured (also known as mobile) and modular homes are two different types of homes that can translate into two different buying experiences.  Both homes are constructed in an off site factory and are brought to a piece of property.  While they are sometimes confused, there are differences between the two that impact how buyers can purchase them.   

What is a modular home?

A modular home is constructed at a manufacturer’s facility and brought to the buyer’s property to be placed on a permanent foundation and completed.  Modular homes meet the same building code guidelines that are put in place by the state and local government for traditional homes built on site.  

Often, when people think about modular homes, an image of a rectangular ranch comes to mind.  Today, modular homes look like traditional homes.  Sometimes a buyer may not even be aware that the home in Locust Grove is a modular home just by looking at it.  These homes can have basements.  They have architectural details like traditional homes and come in a variety of home styles such as colonial or craftsman.  Modular homes are not limited to one story either and you have the ability to customize the home as you would a new construction house.  Like other homes, modular homes build equity and can increase in value over time. A modular home can usually be constructed in less time than a traditionally built home.

Buying a Modular Home

The cost of purchasing a modular home can be less expensive than a traditionally built home.  Since the manufacturers are purchasing materials in bulk to build homes in their facilities, they can pass some of the savings to the buyers.  However, unlike a stick built home, the land does not come with the home.  Buyers have to have a piece of property to place the home on and this is not included into the cost of the home.  Buyers will also have a separate cost of preparing the property for the home like a well and septic system and survey.

You can obtain financing for a modular home just as you would for a traditionally built home with a mortgage.  Often modular home companies will offer financing packages for buyers.

What is a manufactured home?

Like a modular home, manufactured homes are also built in factories.  Instead of being placed on a permanent foundation, modular homes are built on a steel frame.  They have wheels attached to the home that are often taken off once the home is placed on a lot.  These homes are ones built after July 15, 1976 and meet HUD standards.

While originally manufactured homes were meant to move from one place to the next, today the homes are typically affixed to a property.   The homes vary in size from small four hundred square feet one bedroom and bathroom footprints to larger 2,5000 square feet homes with three to four bedrooms.  Manufactured homes are one level homes.

Buying a Manufactured Home

The cost of purchasing a manufactured home is less than a modular or traditional one.  If you purchase one in a community, then you will pay rent for the land that the home occupies, or buyers can decide to affix the property to a piece of land that they have purchased.  Usually, owners will place the home on a permanent foundation.  Unlike modular homes, manufactured homes often depreciate in value over time.

The lending options for manufactured homes are less than modular.  Many mortgage lenders do not offer programs for manufactured homes.  For mortgage companies that do lend on manufactured homes, the home will need to meet these qualifications:

  • foundation certification
  • on a permanent foundation
  • axles and tongue removed
  • two data plates attached to home one on the inside and one on the outside
  • homes has been transferred from personal to real property  

Often buyers work with the manufactured home company to secure financing for the house.