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Manufactured Homes are NOT the Same as Modular Homes

By
Real Estate Agent with Cedaredge Land Company

Manufactured Homes are NOT the Same as Modular Homes

Something I run across quite a bit in my real estate business is a buyer thinking that manufactured homes and modular homes are one and the same type of house. There is one similarity, but these are really two different types of houses. 

Manufactured Homes are NOT the Same as Modular HomesBoth manufactured and modular homes get their start in a factory. I think that is where the confusion comes from, but that is where the similarity ends. 

A manufactured home is the updated version of a trailer. It is a mobile home. It has a chassis known as a steel frame. This is a permanent part of the house. It is towed in on it's own wheels. A manufactured home is built to HUD (Department of Housing and Urban Development) standards. They are always one story.

Manufactured Homes are NOT the Same as Modular HomesEven though a manufactured home is set on a permanent foundation, it is still considered a manufactured home. Even if the steel frame, HUD label, wheels and axles are removed...it is still considered a manufactured home. There is no way to change what type of home it is. A manufactured home is classified differently by lenders and the tax assessor. Like a motor vehicle a manufactured home depreciates in value over time. 

Modular homes are brought in on a flatbed truck in sections. They aren't towed in like manufactured homes. They don't have axles. They are constructed in a factory and put together on a permanent foundation on the building site. Modular is a method of construction. Modular homes are built to very specific, tight standards. This is because the sections have to withstand traveling to the building site. All modular homes must be built according to local standards and codes and IRC Code (International Residential Code). You can have a two story modular home.

Manufactured Homes are NOT the Same as Modular HomesThey are treated like site built homes by lenders and tax assessors. I have talked with builders that say modular homes are often better than site build homes, because of the controlled environment in which they are constructed, the tight construction standards used and they don't sit out in the weather for many months like a home under construction. A modular home can go up in as quick as two months. 

Modular homes are very much the same as site built homes. A manufactured home is an inexpensive form of housing. 

I've lived on Colorado's Western Slope for over 25 years. I love this area and all it has to offer, and I enjoy sharing what I know about my home. As a REALTOR®, I also love to share my expertise in this area as well. If you need any real estate information for Montrose County, or Delta County, Colorado...please give me a call

 

 

 

Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Dinah Stallworth ...I'm glad you found the post informative. Thank you for stopping by. 

Sep 06, 2015 02:41 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Dan. I'm glad you liked the post and found it informative. Thank you for stopping by. 

Sep 06, 2015 02:43 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

You got that right, Praful Thakkar ...manufactured homes do depreciate over time. There are also differences with lenders. Thank you for stopping by. 

Sep 06, 2015 02:55 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Virginia Hepp ...I'm glad you liked the post, and found it informative. That's why I posted it. So people can find out the difference. Thank you for stopping by. 

Sep 06, 2015 02:56 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Richard...I'm glad you found this post informative. Thanks for stopping by. 

Sep 06, 2015 02:57 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Scott Godzyk . I knew you would know the difference. Thanks for stopping by. 

Sep 06, 2015 02:58 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

You got that right, Nina Hollander ...financing is an issue between a modular and a manufactured home. Lenders don't look at them the same way. 

Sep 06, 2015 03:00 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I couldn't answer that question either, Nicole Doty - Gilbert Real Estate Expert , but thanks for stopping by. 

Sep 06, 2015 03:01 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I'm glad you liked the post, Michael. Thank you for stopping by.

Sep 06, 2015 03:01 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Maureen Bray Portland OR Home Stager ~ Room Solutions Staging ...I'm glad you liked the post. Thank you for stopping by. 

Sep 06, 2015 03:02 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

As always, Bob, you're comments are appreciated. Thank you for stopping by. 

Sep 06, 2015 03:03 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Sharon Lee ...I just got your flowers. Thank you so much. You are such a sweetheart. 

Sep 06, 2015 03:05 PM
Sharon Lee
Sharon Lee's Virtual Assistance - Jonesborough, TN
Retired and loving life

Debbie Laity -Glad you like them. You deserve them

Sep 06, 2015 04:21 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Morning Debbie Laity 

Great strides have been made in the quality of both. Good article as I've heard Realtors® use the terms interchanably

Sep 07, 2015 09:36 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Thank you, Vick The Realtor Residential - Commercial - Lodging for stopping by and your nice comment on my featured post. 

Sep 08, 2015 12:54 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Doug Dawes ...they have made some great advancements in manufactured homes. Some of them are very beautiful. Thanks for stopping by. 

Sep 08, 2015 12:55 PM
Elyse Berman, PA
LoKation Real Estate - Boca Raton, FL
Boca Raton FL (561) 716-7824

Debbie Laity I had someone ask me about modular homes recently.  We do not have any in my area, so I went on AR and there was your post, which I promptly emailed to them.  Thank you for explaining

Sep 09, 2015 09:44 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Elyse...I'm glad this post helped you. That is so neat. Thank you for your wonderful comment. 

Sep 09, 2015 02:36 PM
Michael Dagner
Brokers Guild Classic - Denver, CO
Your Denver Homes Realty Expert

Hi Debbie, nice post!  Many folks don't know the difference unless they've bought, sold, or lived in one.  Thanks!

Sep 20, 2015 04:07 PM
Ninah Hunter
Ridgway Real Estate - Ridgway, CO
Independent Broker, REALTOR®

Great explanation about the differences, Debbie.  It doesn't help that even Realtors continue to use the terms interchangeably, whether they know the difference or not.  I have had experiences where an appraiser got it wrong and even the Assessor.  For that matter, I've heard lenders confuse the terms.  You are so right, too, that on the lending side, manufactured homes are treated differently than modular, the former not quite as favorably and the former same as a stick-built.  It all has to do with risk and marketability.

Feb 20, 2016 05:42 AM