| Many wonder what the difference is between a | | | | site in largely complete form as multiple modules and |
| manufactured home and a modular home because | | | | placed by crane on conventional basement or crawl |
| both may be placed in a land-leased community or on | | | | space foundations. The design and construction of |
| private property. The differences are in how it is | | | | modular homes are regulated entirely by state and |
| assembled and erected on the site as well as the | | | | local building codes similar or identical to those that |
| building codes each must follow. | | | | apply to site-built homes. Modular homes account for |
| Manufactured homes, formerly called mobile homes or | | | | about 3 percent of all homes built annually in the |
| trailers, are constructed with a permanent chassis | | | | country or about 42,000 homes in 2004, according to |
| designed for over-the-road transportation and | | | | the National Association of Home Builders (NAHB). |
| delivered to the home in one or more sections | | | | There generally is more difficulty in financing |
| according to the National Manufactured Home | | | | manufactured homes than modular homes and they |
| Construction and Safety Standards Act of 1974 | | | | can also be more difficult to refinance due to their |
| enforced by the Department of Housing and Urban | | | | originally being classified as "vehicles" and suffering |
| Development (HUD). This is why they are also called | | | | similar property depreciation as automobiles and |
| HUD-Code homes. | | | | because many manufactured homes are on leased |
| HUD regulates the home's design and construction, | | | | land. However, if you also own the land on which the |
| strength and durability, transportability, fire resistance, | | | | manufactured home is built, and the home is immobile, |
| energy efficiency and quality control. It also sets tough | | | | getting manufactured home loans and refinancing is |
| performance standards for heating, plumbing, | | | | generally easier. Modular home financing, on the other |
| air-conditioning, thermal and electrical systems. | | | | hand, are treated in the same way as site built homes. |
| Manufactured homes are popular in the southeast and | | | | With more people turning to manufactured and |
| southwest, as well as in rural areas on private land | | | | modular homes as low-cost housing solutions, it is |
| with minimal land use restrictions. | | | | getting easier all the time to find the right manufactured |
| Modular homes, sometimes known as state | | | | or modular home lender. |
| pre-manufactured homes, are delivered to the building | | | | |