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This question was recently asked of me and I thought it was so relevant, that I wanted to share with you all in a succinct blog post.
Modular homes and manufactured homes are both types of prefabricated housing, but there are some key differences between them in terms of lending. This was the reason I highlighted this aspect as it affects whether you are even able to qualify for a loan for purchase of the property.
What are modular homes?
Modular homes are built in a factory and then transported to the building site, where they are assembled on a permanent foundation. They are typically financed through traditional mortgage loans and must meet local building codes and zoning regulations.
What are manufactured homes?
Manufactured homes, also known as mobile homes or trailers, are built entirely in a factory and are designed to be transported to a site on a chassis and wheels. These homes are typically financed through personal property loans and are subject to different zoning and building regulations than modular homes.
CORONADO BEACH BY PGIAM | GETTY IMAGES
What about in terms of lending?
In terms of lending, the main difference between the two types of homes is that modular homes are typically financed through traditional mortgages, whereas manufactured homes are financed through personal property loans. Lending standards may be different for manufactured homes and they may be more challenging to finance. When searching for properties this is when who you have on your real estate team matters.
Your local agent can help you foresee potential property aspects that may affect or limit your access to financing. Your lender can help you navigate and possibly offer creative options in order to move forward on purchase of that property. If you’re ready to buy in the San Diego area and need help finding a top lender in the area, my team and I are here to help you navigate the purchase and lending process.
Disclaimer: We do our best to source factual data from the best resources out there. However, it’s always advised for consumers to perform their own due diligence, confirm accuracy and consult a legal or real estate professional. All information is deemed reliable but not guaranteed.
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