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It all comes down to the chassis. If it has a permanent chassis, it’s a Manufactured home not a Modular. Don’t know exactly what a chassis is? I don’t either, but I do know you need one to put wheels on a house! So basically, a manufactured house is a trailer, otherwise known by the terms “Mobile Home”, “Single-Wide” or “Double-wide”. Since June 15, 1976, manufactured homes have had to meet U.S. Department of Housing and Urban Development (HUD) Code and Manufactured Home Construction and Safety Standards. The HUD Code requires that manufactured homes display a red certification label on the exterior of each transportable section. Like Modular Homes, they may be transported in one or more sections.
Modular homes are built in a controlled environment (such as a warehouse) to the same state and national codes as stick-built or site-built homes. These homes usually arrive at the site partially assembled or as panelized wall systems. Some will argue that a Modular home could be more structurally sound than a stick built home due to the larger floor joists necessary for travel. The wall and floor components are often glued for additional strength. Having a modular home built is usually significantly less expensive than a stick built home. With the assistance of computer aided design and the ability to view dealer models, consumers can select a custom floor plan and design with ease.
When purchasing a manufactured or modular home please be aware that these homes may not be eligible for all loan programs.
Modular homes are NOT manufactured homes. They are two different animals, manufactured homes are single-wides and double wides. Modulars are built to the EXACT same building codes as a stick built homes. Manufactured homes are governed by HUD. Modular homes are built in a controlled environment and vary greatly by manufacturer but they are not manufactured homes. By the way, structures do not appreciate EVER. Land appreciates.
In many areas, modular homes are also commonly referred to as "manufactured homes".
Your statement that "structures do not appreciate EVER" is false. As a rule, that is generally true but not in every instance. When the cost of construction goes up faster than incurable depreciation accumulates, it is not uncommon that structures WILL appreciate, and historical homes will appreciate in value if well built, depending on location and market conditions.
BTW, I do have a pretty good education in real estate. I have been a real estate appraiser since 1983 and have taught courses on these subjects.
In many areas, modular homes are also commonly referred to as "manufactured homes".
Your statement that "structures do not appreciate EVER" is false. As a rule, that is generally true but not in every instance. When the cost of construction goes up faster than incurable depreciation accumulates, it is not uncommon that structures WILL appreciate, and historical homes will appreciate in value if well built, depending on location and market conditions.
It doesn't matter if people "commonly refer" to modular homes as manufactured homes when what they are saying is incorrect. You and I both know there is an ocean between the two and using the terms interchangeably effects everything from appraisal values to loan programs. I once had an insurance agent tell a client of mine that was buying a modular home that they couldn't get insurance because they didn't insure mobile homes. I will never refer an Buyer to this insurance again because she should have known better. Industry professional should know the difference and understand the importance of using the correct terminology because it has great bearing on the subject matter.
Without maintenance all structures depreciate. I get what you are saying though. In the short term I could see how that could happen. However, the appreciation that someone would see on an unmaintained home built in 1970 would be attributed to the land.
They will typically not appreciate as fast as regular construction but they can go up based on the market. Manufactured homes typically have a lower initial cost but will sometimes drop in value depending on how they age. But the newer manufactured homes are much improved and tend to hold their value.
When purchasing a manufactured or modular home please be aware that these homes may not be eligible for all loan programs.
Loans for Modular Homes once they are built is the same as any other site built home. If you are buying one through a builder (brand new), it will be a construction loan that then converts to a conventional loan.
We have been looking in a couple of states and find that there are a lot of the homes, let's call them "put together in large pieces onsite" available. My brother, who pays more attention to the market since he did some "flipping" before that "flopped" says it is much harder to get a loan and I think he mentioned that it required a larger down payment. I think it is very easy to tell the difference, just by looking from the street or in a photo, between site built and "put together in large pieces onsite". If you are going to live in it for years and years and basically get your money out of it then it would be a good investment. Also, I believe when you tie it in with the property itself which we did once that it becomes real property versus personal property and I have seen plenty under foreclosed properties - different lenders, plenty and they just seem to sit.
The only one that does not loose value is a Mondular. Some mod made look like manufacture but their not their build better and they go under the same inspection as a site build home. Manufactured home go under hud code. They loose value. their is a load of info. all over the internet.
I love my modular. a lot of miss informed people out their think manufacture and modular just because some of them look the same are the same they they are very miss informed.Some one said he lives in texas and tornadoes took all mondular homes away, If i am not mistaken tornardoes take everything away So that is a poor excuse not to like mods you never lived in on i have a 1670 sq foot my wife and i we both love it.We had issures with the home minor But you have a sticked build home build you will have issure with it also at first.
It doesn't matter if people "commonly refer" to modular homes as manufactured homes when what they are saying is incorrect. You and I both know there is an ocean between the two and using the terms interchangeably effects everything from appraisal values to loan programs. I once had an insurance agent tell a client of mine that was buying a modular home that they couldn't get insurance because they didn't insure mobile homes. I will never refer an Buyer to this insurance again because she should have known better. Industry professional should know the difference and understand the importance of using the correct terminology because it has great bearing on the subject matter.
Without maintenance all structures depreciate. I get what you are saying though. In the short term I could see how that could happen. However, the appreciation that someone would see on an unmaintained home built in 1970 would be attributed to the land.
Thank you finally someone informed about Modular homes
The only one that does not loose value is a Mondular. Some mod made look like manufacture but their not their build better and they go under the same inspection as a site build home. Manufactured home go under hud code. They loose value. their is a load of info. all over the internet.
I love my modular. a lot of miss informed people out their think manufacture and modular just because some of them look the same are the same they they are very miss informed.Some one said he lives in texas and tornadoes took all mondular homes away, If i am not mistaken tornardoes take everything away So that is a poor excuse not to like mods you never lived in on i have a 1670 sq foot my wife and i we both love it.We had issures with the home minor But you have a sticked build home build you will have issure with it also at first.
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Loans for Modular Homes
