Manufactured home vs. Modular home

Many people that call me for a mortgage on a manufactured home, mistakenly refer to their home as a "modular home". I've come to assume this is because they feel that by calling their home a "modular", they feel it gives it more of a quality that the name "manufactured home" doesn't.

The problem is that these are two, very distinct types of housing that can and does effect which type of mortgage it qualifies for. You see, a modular home qualifies for the same financing as a stick built home. Whereas a manufactured home may have different rates, costs and may not even qualify for a lot of loan programs. So, what is the difference between the two.

The two homes are essentially the same. In fact, from a distance or even up close, you would not tell the difference (except by the tag on the outside of the home). The difference is where the home was assembled. A manufactured home is assembled in a controlled environment and shipped in two pieces (for a double wide) and connected on it's foundation on the property. A modular home has all of the pieces shipped to the home site where it is assembled in the same fashion as a stick built home.

So, there you have it. While to some people modular may mean "quality". It is essentially the exact same house as a manufactured home, just assembled at the building site and not at the factory. I hope that clears the difference.