Manufactured and modular homes define two prefabricated housing alternatives that are built in factories and assembled on site. Although these types of homes share some common characteristics, a few significant differences can persuade a homebuyer to choose one option over the other.
The main difference, which also indicates the reason why some manufactured homeowners decide to transition from a standard manufactured home to a modular home, is that modular homes are usually installed on a permanent foundation and classified as real property. This may save a manufactured homeowner, who intends to convert a manufactured home classified as personal property to real property, from having to build a separate HUD-approved foundation, attach the home permanently to it, and then go through the conversion process.
While transitioning from a standard manufactured home to a modular home can be really exciting, a manufactured homeowner may feel a little bit intimidated by the whole process. That's because there are many factors that can make or break the transition journey. To help you get started, we've put together this quick list of the most important aspects you should take into account when selling your manufactured home and buying a modular home.
Most financial institutions that make financing options available for standard manufactured homes also provide modular home financing that buyers can use in order to finance the purchase of modular homes. Because a modular home can be bought with or without land (in the case you own a lot already), you could opt for different loan programs, such as the Home Only, Land/Home, or LandPlus program.
Irrespective of the reasons why you’ve decided to sell your manufactured home and buy a modular home, there are three distinct scenarios:
When buying a modular home, buyers have different priorities. Because the home buying process is complex and takes time, getting your priorities straight could help you go through the home selling and buying process without forgetting the most important amenities and features.
Some of the things you should consider before buying a modular home are the location and size of the lot, layout and size of the home, finishing materials, appliances, as well as community amenities and services.
However, before you choose a floor plan and customize the home to suit your needs, it's important to visit and tour a fully finished and decorated model. That's the only way to find out if living in a modular home is the right choice for you. If you like the home, the last thing you need to do is arrange financing and then order the home.
Transitioning from a standard manufactured home to a modular home can be quite overwhelming. To make the transition as smooth as possible, our experienced financial professionals are ready to answer any questions you might have about the financing options we make available for factory-built homes.