Manufactured vs. Modular Homes

Understanding the Differences for Accurate Appraisals

When it comes to appraising homes, it’s important to know the difference between manufactured homes and modular homes, as they have distinct characteristics affecting value, financing, and insurance.

Manufactured Homes

• Built entirely in a factory and transported to the site

• Built to the HUD Code (federal building code for manufactured housing)

• Typically placed on a permanent or semi-permanent foundation

• May depreciate in value over time like vehicles

• Often financed with personal property loans (chattel loans)

Modular Homes

• Also built in a factory but constructed in sections (modules)

• Built to local or state building codes like site-built homes

• Assembled on a permanent foundation on-site

• Typically appreciate in value similarly to site-built homes

• Usually qualify for traditional mortgage financing

Why This Matters for Appraisals

• Manufactured homes may have different valuation methods than modular homes

• Lenders may have specific requirements based on home type

• Insurance premiums and coverage options vary

• Buyers and sellers benefit from clear understanding of home classification