The Difference Between Mobile and Modular Homes

As homeowners seek increased mobility and options in the real estate market, there are an growing number of options available in the mobile and modular home area.

Traditional mobile homes are generally thought of as Recreational Vehicle equivalents, and while these options are available, there are countless other choices which represent an evolution of the industry in recent years. If you’re considering making an investment in a mobile home, it pays to understand the various options that you have.

While a standard, foundation-based home can be quite expensive and inflexible in its terms, companies are producing a larger variety of home options for families.

One option that you have is to purchase a Site Built home, which are constructed on site to comply with Housing and Urban Development (HUD) regulation codes, as well as state and local building codes to help ensure both durability and qualification for financing.

Since these homes are custom built on site, they can accrue in value over time, and you have more flexibility to determine the structure, size and features that you’d like included. Importantly, since the homes are a hybrid choice between mobile and permanent homes, they have a more effective cost basis.

Another option that has been growing in popularity are modular homes, which are constructed in sections within a factory and then delivered on site.

A number of companies offer modular construction, which is also built to conform to code standards but generally comes in a series of model choices, rather than complete custom options. Once you have chosen a model you like, you can add certain customized features, which are then delivered to your home site, where it will be fully inspected by contractors who will install and finish the integration of the home.

These options are increasingly popular in many areas, and have a long history from providers such as Cavco, based out of the Southwest.

Manufactured homes provide another option and represent the evolution of the traditional mobile home trailer option. Constructed to comply with HUD regulations, mobile homes are built on steel chassis which give them lasting durability, although their foundations are not strictly permanent and so they are harder to finance than foundation-based homes. Mobile, manufactured homes are less expensive, but tend to lose their value over term while modular and manufactured homes can accrue in value if kept up properly. Local contractors will inspect the home and connect all of the utilities, although regulations are less strict than on permanent homes.

Consider all of your options for mobile homes, including the financial trade offs that can be found in each. Financing of different types of home structures can play as big of a role as the differences in the models you select themselves, so check with potential lending institution as to the availability and financing costs of each before making a final decision. Generally, homes with more permanent foundations that are built to last will hold up value better over time, and also will be much easier to finance, especially in a difficult market such as the one we are facing today.