What is the Difference Between Manufactured, Mobile, and Modular Homes?

What is the Difference Between Manufactured, Mobile, and Modular Homes?

If you’re searching for the right home to invest in but don’t necessarily want to purchase a single-family home, you might be interested in placing your investments into prefabricated homes, which are built in a factory and sent over to the main location for final assembly. There are three types of prefabricated homes, which include mobile homes, modular homes, and manufactured homes. Here is a more in-depth explanation of what these types of homes are and how they differ.

What Are Mobile Homes?

Mobile homes have been popular in the U.S. for more than a century. When people need to find work in a new location, these homes were considered to be a decent option. When these homes were first brought to the market, their appearance was similar to that of campers or trailers.

These homes would be comprised of wheels and a coupler for a trailer, which allowed a mobile home to be easily attached to a vehicle. However, mobile homes aren’t developed in this manner anymore. Safety standards were passed by the HUD in the early 70s that meant that mobile homes no longer met the standards for mobile home construction.

What Are Manufactured Homes?

Manufactured homes are ones that are constructed almost entirely in factories. Once these homes have been built, they are sent to the main home site for final assembly. It’s possible to purchase manufactured homes in three sizes, which include triple section, double section, and single section.

In the event that a manufactured home is constructed with a basic pier and beam foundation, it can be moved even after it has been assembled. The main difference between mobile homes and manufactured homes is that manufactured homes meet the aforementioned HUD standards.

What Are Modular Homes?

Even though modular homes are typically constructed in a factory, most of them are built in smaller pieces before being assembled at the site of the home. These homes are always built to meet local and state building codes, which means that they adhere to the same requirements that an on-site constructed home must meet.

Modular homes typically use a permanent foundation, which means that they can’t be moved once fully assembled. If you want to invest into a prefabricated home that’s similar to an on-site built home, a modular home is your best option. You can have modular homes built with many different floor plans and layouts. These buildings usually come with options for one or two stories.

Selecting the Right Investment

Now that you know the difference between these types of prefabricated homes, it should be easier for you to identify which type of building you should invest in. As mentioned previously, standard mobile homes are no longer built since they don’t meet the HUD standards that were passed in 1974. Both modular and manufactured homes come with myriad design options. Developers can select from multiple layouts and floor plans. It’s also possible to customize every facet of the home’s details, which include the cabinets, interior appliances, paint colors, and flooring.

Consider investing in prefab homes that are designed with energy efficiency and sustainability in mind. Modern homeowners want features like energy-efficient windows, solar panels, and smart thermostats. If you want to invest in homes that can be moved, consider placing your money into manufactured homes. In comparison, modular homes are typically placed on a more permanent foundation.

Both of these types of prefabricated homes should be considerably less expensive than investing in a built-on-site home. Keep in mind that there are usually more loan options and financing opportunities for modular homes in comparison to manufactured homes, which is essential if you require a small loan to complete your investment. Many investors who are interested in the prefab industry will choose to place their money into REITs, which are real estate investment trusts that come with a minimum investment requirement of $1,000-$25,000.

Budget-conscious millennials are becoming increasingly interested in affordable homes, which gives you the opportunity to invest money into the prefab market. Since prefabricated homes are considerably less expensive than homes built on site, many new homeowners will be interested in buying these homes, which is something that you can profit from.