Manufactured Homes 101 - Buying Guide

Modular Homes

These structures are the fastest-growing segment of the home building industry. These homes substantially built in a factory, and then transported in sections to the home site where onsite work is completed. They allow for considerable architectural design freedom, are built to local code, can typically be built anywhere that is zoned residential, and provide the opportunity for higher appraisals. A well-built modular home should have the same longevity as its site-built counterpart, increasing in value over time.

Modular Homes VS. Manufactured Homes

Often confused with manufactured homes, which are also built in a controlled factory facility, see below for the main differences between these two types of homes:

Modular Homes

  • Sections are built in a factory to either local or state building codes, then transported to the building site on truck beds.
  • Assembled by local contractors on location.
  • Typically uses a traditional concrete foundation (permanent).
  • Unlike a manufactured home, a modular home cannot be moved once built.

Manufactured Homes

  • Homes are built entirely in a factory under the federal building code administered by the Department of Housing and Urban Development (HUD).
  • Completed homes are transported on a truck bed to final destination.
  • Can be moved to new plots of private land or communities.

Despite their differences, these home types do have several similarities that are worth discussing. First, both benefit from the inherent advantages of being built inside a factory under predictable conditions. Second, both manufactured homes and modular homes must conform to strict building codes that are constantly being updated. Third, either one can be built to be energy efficient using the latest ENERGY STAR®-rated materials and technologies.

The FMHA has members that build manufactured and modular housing, as well as other members including financial institutions, retail sales centers, housing communities, and other specialists you can turn to if you are interested in buying a manufactured home. When you’ve decided to have a manufactured or modular home built for you and your family, we can connect you with the right resources to facilitate the process. For more information on manufactured and modular housing, contact FMHA today.

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