If you are interested in becoming a homeowner, you may have heard the terms manufactured, modular, and site-built come up often. Understanding the major differences is the first step toward making an informed decision for you and your family. We’ve broken them down for you below.
Manufactured Home
Manufactured homes are built entirely in a climate-controlled factory and then transported to the location where they will be placed. They primarily come in three width categories: single-wide, double-wide, or triple-wide sections to fit a variety of lifestyles, needs, and budgets.
Construction
The home is built in one or more sections and then transported on a permanent steel chassis, a metal frame with wheels for transportation. Once it arrives at the site, it is placed on either a temporary or permanent foundation, and the sections are connected. Of the three options, manufactured homes are typically the fastest to complete, generally taking only 2 to 4 months.
Regulation
Unlike site-built and modular homes, manufactured homes are governed by federal standards established by the U.S. Department of Housing and Urban Development (HUD). Through the National Manufactured Housing Construction and Safety Standards Act of 1974, which took effect in 1976, the HUD code covers design, construction, and installation. Homes built to HUD code display a red certification label on the exterior of each section.
Financing
There are several ways to finance a manufactured home. If the home is permanently attached to land you own (real property), it is typically eligible for a traditional mortgage or a conventional loan. Otherwise, options include FHA, VA, and chattel loans. A chattel loan treats the home as personal property and is common when the home is placed on leased land.
Ownership and Land
You can place a manufactured home on land you own, leased private land (non-community), or within a land-leased community. Since manufactured homes are built on a permanent chassis and titled through the Bureau of Motor Vehicles (BMV), they can be relocated if needed. This provides homeowners with added flexibility that modular and site-built homes do not offer.
Modular Home
Modular homes are also built in a climate-controlled factory, but differ from manufactured homes in several ways. One of the biggest differences is that modular homes are designed to be permanently placed on a foundation.
Construction
Modular homes are constructed in sections, called modules. While the home is being made in the factory, the foundation can be prepared at your property simultaneously. Once the modules arrive, they are set in place by a crane and connected on site. Modular homes typically take between 3 and 6 months to complete.
Regulation
Modular homes must follow state, local, and regional building codes, such as the Indiana Residential Code. These are the same codes that site-built homes follow.
Financing
Since modular homes are considered real property, once permanently installed, they can be financed like a traditional home. Options include conventional loans, FHA, USDA loans, or a specialized construction loan. Requirements may vary depending on whether you are purchasing an existing modular home or building a new one.
Ownership and Land
Modular homes must be installed on permanent foundations and are typically placed on land owned by the homeowner. They are legally classified as real estate and treated like traditional site-built homes.
Site-Built Home
A site-built home, also known as a traditional or stick-built home, is constructed on the property where it will remain. This is the most traditional type of home that many people are familiar with.
Construction
Every stage of construction takes place on-site. These homes are built piece by piece from the ground up. They can vary in construction time depending on the home’s size, design, and complexity. Since this construction occurs outdoors, it is subject to weather delays and other unpredictable factors. Construction can take between 6 and 12 months or longer to complete.
Regulation
Site-built homes follow state, local, and regional building codes. In Indiana, this means following the Indiana Residential Code. Local inspectors will visit the site during stages of construction to ensure everything is up to code.
Financing
Site-built homes offer a wide range of financing options. Depending on eligibility requirements, buyers may qualify for loans such as conventional, FHA, VA, USDA, and specialized construction loans.
Ownership & Land
Site-built homes are permanently attached to the property on which they are constructed and are classified as real estate. Homeowners own both the home and the land beneath it.
Homeownership is Within Reach
Each home type offers different advantages. Understanding your options puts you in a more confident and informed position when making a homebuying decision. At New Durham Estates, we specialize in manufactured homes and would love to help you find the right fit. Stop by our office today to learn more about what manufactured living has to offer and explore available homes in our community.
