What’s the difference between manufactured and modular homes

Buyer education series for Crested Butte Real Estate

June 10, 2024: Article written & data compiled by Heather Connor, Crested Butte Realtor®

This questions 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.

A few days ago I sent out our most recent Deal of the Week as I made a note highlighting that It was a modular home. So why was that important?

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 highlited this aspect as it affects whether you are even able to qualify for a loan for purchase of the property.

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.

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.

In terms of lending, the main difference between the two types of homes is that modular homes are typically financed through traditional mortgages, while manufactured homes are financed through personal property loans. Additionally, lending standards may be different for manufactured homes and they may be more challenging to finance.

Just remember, I am here for you and your questions. If you need assistance better understanding your options or want me to put you in touch with a darn good lender, shoot me a message- contact information below.

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by REALTOR®, Heather Connor

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