Modular homes are assembled on a site and anchored to a base, while a prefab house is transported in one piece to a site and can be relocated. Because they can be moved, manufactured homes are considered movable property (personal property), as are recreational vehicles. They aren't usually as customizable as modular homes, but you'll still have different floor plans and architectural styles to choose from, which can make them more like traditional site-built homes. The three main differences between modular and prefab homes are the way they are built, the type of foundations they are placed on once finished, and the building codes they must comply with.
A disadvantage of buying a manufactured home is that it can be more complicated for buyers to obtain a mortgage. For example, some states, such as North Carolina and South Carolina, have regulations for the appearance of a modular home that regulate the minimum roof pitch, the length of the overhang, and the minimum foundation requirements. With the approval of the National Prefab Housing Construction and Safety Standards Act of 1974, HUD began to require strict construction and safety standards for all prefab homes certified by HUD. Modular homes can be difficult to differentiate from other homes and must comply with local building codes and regulations, while prefab homes are built on a fixed chassis and must comply with established building codes by the HUD.
Rocket Mortgage offers financing for prefabricated homes built on or after June 15, 1976, that are permanently attached to the land (real estate) and have a HUD label. You may find that you have more financing options if you decide to place a prefab house on the land. Unlike traditional homes, both modular and prefab homes are built to some extent in an off-site factory. Prefab homes, sometimes referred to as mobile homes or trailers, are houses completely built in a factory and built on a fixed steel chassis (instead of a permanent base).
That said, just because it's harder to find a mortgage loan for a manufactured home doesn't mean it's impossible. Modern prefab homes are extremely different from mobile homes built before 1976, both in terms of construction and design. It's important to note that prefab homes built before June 15, 1976, when the law took effect, are not considered compatible with the HUD code. The main difference between prefabricated and modular houses are the codes according to which they are built, which we will talk about later.
In addition to other considerations, such as customization and mortgage options, knowing the difference between modular and prefab homes will help you make the right decision.
