Modular Vs. Manufactured Homes: What’s The Difference?

Modular and manufactured homes are two types of housing that are generally more affordable than traditional site-built homes. Understanding the key differences between these property types is essential for anyone interested in learning more about how to buy a house.

Explore how modular and manufactured homes are different, so you can determine whether one of these options is the right fit for you.

What Is A Modular Home Vs. Manufactured Home?

Modular and manufactured homes are prefabricated structures, meaning they’re partially or fully constructed in an off-site factory.

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 can be moved from one location to another.

Modular Home Defined

Like a traditional home, a modular home is placed on a permanent foundation. The construction of a modular home must comply with local building codes and standards in the area where the home will sit. The house is partially constructed in a factory and shipped to the homeowner’s lot.

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.

Most banks and mortgage lenders offer financing on modular homes, which means that buyers will have a more diverse range of options when it’s 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 by HUD. This type of home is then transported from the factory to the home site – either in sections or as a whole – and installed on a temporary or permanent foundation.

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

Rocket Mortgage^® offers financing for manufactured homes built on a permanent structure on or after June 15, 1976 – the date the HUD code setting federal safety standards on manufactured houses went into effect.

Mobile Vs. Manufactured And Modular Homes

“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 they are built in a factory and generally 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.