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5 min read Jan 15, 2024

Modular vs. Manufactured Home: Which Is the Better Option?

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Megha Mulchandani

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Editor
Edited By

Megha Mulchandani

Editor, Houzeo
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Megha M. is a content editor who loves to play with words. Apart from this, she is a theater artist and a public speaker who transforms into various personas on stage.

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The median price of a modular home is $280,000 in 2024. These homes cost up to 15% less than stick-built houses. Fast construction, energy efficiency, and design flexibility are some of their benefits.

Whereas, the median price of a manufactured home ranges between $120,000 and $270,000. Manufactured homes account for 9.8% of single-family homes in all U.S. housing units. However, manufactured homes have the stigma of mobile homes and low long-term value.

MODULAR AND MANUFACTURED HOMES- AN OVERVIEW 🧾

  • Modular homes are as good as site-built homes. Their resale value increases over time, and their construction duration is almost 40% less than that of site-built homes.
  • In 2023, the worldwide modular home market size was estimated at $45,260 million. It is expected to grow to $54,050 million by the end of 2029.
  • Manufactured homes are portable, but they can be fixed to the foundation if their wheels are removed from the chassis.

Modular vs. Manufactured Home

Modular and manufactured homes are prefabricated structures that have acquired a huge market. They significantly speed up the construction process and save expenses.

What Is a Modular Home?

A modular home is constructed from factory-made housing modules on a permanent foundation. The homeowner has to build the house according to the code of the HOA. Many HOAs don’t allow modular homes, while other HOAs have a code of conduct.

However, you will need to rent or own land to build this type of home. You can construct a small house or a 2-story home with the modular method and customize it according to your needs.

Pros

  • Quality Control: All the modules go through a quality test, which helps to build a strong structure.
  • Flexible Specs: The modular homes are customizable. You can choose the pre-designed module or present your plan to build the house.
  • Construction Efficiency: The construction is completed quickly since the modules are 90% pre-ready in factories.

Cons

  • Land Issues: The cost of renting land can increase if you do not own it. Additionally, the government has banned the construction of modular homes in some particular areas.
  • Extra Cost: You may have to bear additional expenses when you choose to customize your home.

What Is a Manufactured Home?

Manufactured homes are built in factories or warehouses. The U.S. Department of Housing and Urban Development (HUD) establishes guidelines for their construction. The foundations for the houses might be either permanent or temporary.

Manufactured homes are cheaper and can be relocated. They come in three different options: single-wide, double-wide, and triple-wide, with double-wide being the most popular.

Lenders offer various loan options to purchase mobile or manufactured homes. These include chattel loans, personal loans, FHA loans, etc.

>>Checkout Mobile Home Loans to Purchase or Refinance

Pros

  • Affordable Option: Manufactured homes are one of the cheapest options that you can opt for.
  • Factory-ready: These homes are pre-assembled and have a chassis with wheels, making it a portable construction.
  • Energy Efficient: The manufactured homes come under HUD regulations, resulting in quality and energy efficiency.

Cons

  • Depreciating Asset: The value of the manufactured houses may decrease over time unless they’re fixed on a permanent foundation.
  • Lesser Customization Options: The manufactured homes have few to no customization options.

Modular vs. Manufactured Home: Key Differences

Here are the key differences between modular and manufactured homes:

SpecificationsManufactured HomesModular Homes
PortabilityYesNo
Financing FHA Title 1 loan, chattel loan, or standard loanStandard loan
Building CodeHUD codeState, regional, and local codes
FoundationTemporary / Permanent (when affixed)Permanent
CustomizabilityLessMore
Cost to buildCheapModerate
DurabilityLess Moderate
Home sitePrivatePrivate / land-lease

Financing Options

Here are the financing options for modular homes as well as manufactured homes:

Modular Homes

To build a modular home, a buyer can opt for various types of loans. Conventional, FHA, VA, USDA, and personal loans are available for modular homes. Additionally, a construction loan is an option available to the buyer for the duration of the development project.

Manufactured Homes

There aren’t many financing options available for manufactured homes. However, you can avail of a standard mortgage if you own the land to build your house.

FHA provides Title 1 for manufactured homes. You can also opt for chattel loans. You can be eligible for these schemes once you fulfill all the requirements.

Find Homes For Sale by Home Type and Style

The market offers a wider range of homes than ever before. But don’t get overwhelmed! Knowing your preferred style can help you narrow your search. Here are some options to target your search by home style:

Apartments for sale in US
Cabins for sale in USCheap Homes for sale in USCountry Homes for sale in US
Duplex Homes for sale in USFarms for sale in USFarmhouse for sale in USForeclosed Homes for sale in US
Historic Homes for sale in USHomes With Acreage for sale in USHouses With Pool for sale in USLakefront Homes for sale in US
Luxury Homes for sale in USManufactured Mobile Homes for sale in USManufactured Homes for sale in USMobile Home for sale in US
New Homes for sale in USRanch Homes Near Me for sale in USTiny Homes for sale in USWaterfront Homes for sale in US

Modular vs Manufactured Home: Which One Should You Choose?

A modular home is a permanent structure, and a manufactured home is for movers. However, you can fix the manufactured house with no wheel on the chassis.

Moreover, you must opt for the one that is suitable for your budget and requirements. You can also look for your dream at Houzeo.

Find Your New Home With Houzeo

With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale on Houzeo.

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» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.

Frequently Asked Questions

What is cheaper, a modular or manufactured home?

Manufactured homes are cheaper. Modular homes don't cover land costs and can be expensive to customize.

Is a modular home better than a manufactured home?

Modular homes are better in terms of comfort and space. But the customization and other charges make it expensive.

Are modular homes as good as stick-built ones?

Modular homes are not as good as stick-built ones. Most of the time, the build quality is poor for modular homes.

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