What is the Difference Between Mobile Homes and Modular Homes?
Many people believe that mobile and modular homes are the same things, but this is not correct. There are a few key differences that set the two apart from each other.
Mobile homes, otherwise known as trailer homes, are usually small and equipped with a set of wheels. Built in the 70s, these mobile homes were not particularly safe as there weren’t many regulations for building. Mobile homes became more strictly regulated after 1980 and became known as manufactured homes. These manufactured homes were much nicer than the older mobile homes, built to meet modern safety standards and were more aesthetically pleasing.
Manufactured homes are built section-by-section inside home building facilities. The individual sections are taken to the building location and put together on-site. The home is thoroughly inspected after construction and placed on a temporary foundation that can be easily relocated.
Modular homes are similar to manufactured homes but differ in a few key ways. Modular homes must conform to the same local, regional, and state building codes as traditional homes. Manufactured homes, on the other hand, must conform to special codes outlined by the Department of Housing and Urban Development. Additionally, modular homes can be more than one story, whereas manufactured homes are only one story.
Modular homes are usually much sturdier than mobile homes because of the rigorous standards they must meet. Although modular homes can be placed on a permanent foundation, they can also be relocated if the owner chooses.
What Loans are Available to Me?
You can get loans for both modular and manufactured homes through the Federal Housing Administration (FHA), but there are certain requirements:
- Modular or manufactured homes do not have a “no down payment” option through the FHA, but you can get a loan with as little as 3.5% down.
- To get a loan for a manufactured home, the home must be built after 1976 to ensure that it is compliant with the necessary regulations.
- Every section of the home must be compliant with HUD code and the home has to be at least 400 square feet.
- The home must be your primary residence.
- The home has to meet Model Manufactured Home Installation Standards.