Modular, Manufactured, & Mobile Homes
Updated: May 18
What are the Main Differences Between Modular, Manufactured, & Mobile Homes?
"The main difference between manufactured and modular homes is that manufactured homes are built to the national HUD code, while modular homes are built to all applicable state and local building codes."
Modular homes are more often pieced together on site and the median size is inherently bigger than manufactured homes because of it, with an appearance more similar to traditional construction.
"Mobile homes and manufactured homes were distinguished from one (another) in 1974 with the National Mobile Home Construction and Safety Act. This act was followed in 1976 by the HUD Manufactured Home Construction and Safety Standards — usually called the HUD code — which set federal construction standards for manufactured homes."
The 3 compared with each other:
Modular Homes:
A. Most allowed locations
B. Most traditional mortgage lenders with options for financing
C. The resale value/appreciation is best
D. Look most like traditional construction more often
E. Highest standards, including needing to be built on a permanent foundation
F. Highest prices
G. Highest median size
Manufactured Homes:
Manufactured homes are worse than modular but better than mobile for A-D.
E-G are lower than modular homes but higher than mobile homes. Manufactured homes don't need to be on a permanent foundation, and are built on a permanent chassis for mobility (DHCD).
Mobile Homes:
Mobile homes are worse than modular & manufactured for A-D.
E-G are lowest for mobile homes.
Mobile homes often are not on a permanent foundation.
Typical Homes vs. Modular, Manufactured & Mobile Homes
The differences between typical homes and modular, manufactured, and mobile homes follow the same pattern as modular, manufactured, & mobile homes listed above. As shared above, that means that typical construction will have the following compared to the other 3:
"A. Most allowed locations
B. Most traditional mortgage lenders with options for financing
C. The resale value/appreciation is best
D. Look most like traditional construction
E. Highest standards, including needing to be built on a permanent foundation
F. Highest prices
G. Highest median size"
Identifying Existing Modular/Manufactured/Mobile Homes
The first place to look to identify the type of construction is in the listing itself. In REIN MLS (the main direct source of homes in Hampton Roads, VA), you'd look under the "style" section for "Manufactured", "Mobile Home", or "Modular". You can also weed these out from a search or look exclusively for them if desired. That said, sometimes homes aren't labeled properly, whether for better or worse. The home style is featured prominently in the overview section of Zillow.
On-property identification can be difficult at times but is based on factors like:
1st look for & check the data plate on the home. Modular homes built after 71 should have them, often under the kitchen sink. "The Data Plate can be found in a kitchen cabinet, an electrical panel, or a bedroom closet." Manufactured homes' HUD tags may be on the rear of the unit or each of the units.
Is there a permanent foundation? If not, it's a manufactured or mobile home.
Is there a permanent chassis underneath? If so, it's most likely a manufactured or mobile home.
What age is it? If it's built before June 15, 1976, it's more likely a mobile home if it has other characteristics of mobile/manufactured homes but some modular homes were built before then too.
Drywall is more common in modular homes than in manufactured or mobile homes.
Check the roof style within the attic & the roof pitch to identify manufactured & mobile homes. While manufactured homes can have 5x12 roof pitches, you'll find that a lot more often on modular homes. More roof pitch, all other factors the same, extends the life of the roof.
Mortgage Loan Differences
As mentioned above, among modular, manufactured, and mobile homes, modulars offer the most traditional mortgage lenders with options for financing, manufactured homes provide less options, and mobile homes provide substantially less options. In some cases, down payment requirements will be higher and interest rates will be higher for these forms of construction, in the same order of being most likely with mobile homes and more likely with manufactured than with modular homes.
There is an affiliate lender who, last I checked, can do resale manufactured homes built June 15, 1976 or newer w/ typical down payment requirements and conventional, FHA, or VA loans. He can also do USDA loans on those properties built on January 1st 2006 or later with no money down. If you're working with me, just ask for their name & contact info.
Eligible Locations to Build
There are many zoning restrictions on these, especially manufactured & mobile homes, but the level of restrictions depends on state law as well as the city/county ordinances and any association restrictions or other deed restrictions that might be in place.
For instance, in the city of Hampton, only 1 out of the 11 different 1 or 2-family zoning districts has manufactured homes permitted. Manufactured/mobile home parks and subdivisions are not permitted in any of the 11 (7/13/22 chart; source)