What is a "modular home," and how does it differ from manufactured housing?

A modular home is built in sections or modules that are constructed in a factory setting, then transported to the building site for assembly. One of the key characteristics that sets modular homes apart from manufactured housing is that modular homes are constructed according to local building codes. This means they must meet the same standards as site-built homes, including aspects like safety, structural integrity, and energy efficiency.

In contrast, manufactured homes are typically built according to federal building codes set by the U.S. Department of Housing and Urban Development (HUD). These homes are constructed in a factory and can be placed on any suitable land but do not necessarily adhere to local building codes in the same way that modular homes do.

The financing of modular homes differs from that of manufactured homes, as modular homes can often be financed through traditional mortgage options, while manufactured homes might have different financing avenues, such as chattel loans. Additionally, the cost of modular homes can be similar to or even higher than that of manufactured homes, depending on the features and customization, which makes the other options less applicable.