Although the terms modular and manufactured homes tend to get used interchangeably, they are actually two very different types of housing. It’s understandable why so many people get confused, as both types of homes could be considered “manufactured,” since they are both built in a factory or manufacturing facility away from the home’s address. However, when it comes to manufactured and modular homes, it’s important to know the difference, especially when talking about financing.

Manufactured Homes

Manufactured homes are constructed completely offsite and are then transported to their location. Manufactured homes are essentially the same thing as mobile homes or trailers. They can come in a handful of different sizes, but the most common are single- or double-wide. They can be located in a trailer community or on owned land, but manufactured homes are not on permanent foundations.

Unlike modular homes, manufactured homes are pretty easy to distinguish. Also, unlike modular homes, manufactured homes tend to have a reputation for being lower in price, and are usually not expected to appreciate in value at the same rate as other types of homes. Because of this, it can be very challenging to find a mortgage lender who will finance the purchase of a manufactured home.

Modular Homes

Modular homes (also called prefab homes) can come in a variety of shapes, sizes, styles and price ranges. Unlike manufactured homes, modular homes can often be just as expensive as traditional site-built homes.

Modular homes are more similar to site-built homes in appearance, too. Sometimes modular homes can look exactly like site-built homes, due to the advances in modular construction and the wide variety of building styles that are available today.

Although modular homes can look just like traditional single-family homes that are built from the ground up, they are actually built in segments (or modules – hence the name) and then put together at the home site. Also, unlike manufactured homes, modular homes are constructed on a permanent foundation and are considered permanent structures.

Modular homes can be very cost effective and construction on them can be very efficient. Likewise, modular homes have to adhere to all state and federal building codes and must have the same kind of inspections as a regular site-built home. By contrast, manufactured homes only have to adhere to the standards set forth by the Department of Housing and Urban Development (HUD), which tends to have more lenient rules and regulations.

Finding affordable financing for a modular home purchase or refinance isn’t nearly as difficult as it is for manufactured housing.

Luxury Mortgage is pleased to offer modular home financing at highly competitive rates. We can finance a modular home with the following loan programs:

  • Conventional Loans
  • FHA Loans
  • VA Loans
  • Jumbo Loans

To learn more and request a free rate quote, simply call us or complete our contact form and someone from our lending team will contact you after reviewing your information.

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