There Is Difference Between A HUD MANUFACTURED HOME & A MODULAR HOME

 

There Is Difference Between A

HUD MANUFACTURED HOME & A

MODULAR HOME 

 

Part 4 

 

Just to clear the air for those unwary folks that aren't quite sure how to differentiate between a "HUD MANUFACTURED HOME & A MODULAR HOME I thought it might be time to dig through some of my archives and offer up important information that every real estate professional, lender, title & escrow company, contractor, home buyer, home seller and homeowner should know about before entering into any 'FACTORY BUILT' HOME deal.

 

There's a lot of mis-information and/or dis-information in the real estate community on this subject and I just want to help set the record straight in an effort to prevent folks from becoming victims, or worst, getting involved with a messy, costly and time consuming lawsuit.

  

The photo below is a "HUD MANUFACTURED HOME" 

 


 

 

 

 

 

 

The photo to the left is a "MODULAR HOME"

 

 

 

 

 

For those who may have missed Parts 1-3 please take a

few moments to review should you have any interest in

"FACTORY BUILT HOUSING".

 

IPart 1 we discussed the 

difference between an 

"RV", "Park Model" and a "

HUD Manufactured Home". 

 

Part 2 we discussed the difference

between

"TRAVEL TRAILER" and a

"MOBILEHOME"

 

In Part 3 w discussed the difference between a Pre HUD "MOBILEHOME"and a HUD "MANUFACTURED HOME".

 

Now for the 4th Part in this series.

 

No, your eyes are not deceiving you. What you see in these two photos is exactly what you could see on a private lot or parcel in Anywhere, USA. Contrary to popular belief both a HUD Manufactured and Modular Home could very well go down the same assembly line in any factory and often times do.

 

  • Both are available in one and two story floor plans although MODULAR structures can be multiple stories 
  • Both are available in myriad multiple sections and come in a variety of shape and sizes. 
  • Both have virtually the same choices of architectural detail i.e. curvilinear, pop outs, roof line options, T, L and even U shapes can be designed to meet just about any design challenge found in "SITE BUILT" homes.
  • Both can have garages albeit HUD MANUFACTURED HOMES do require an alteration permit if the garage is to be attached. Or you can give it the appearance of being attached by unitizing it with flashing, siding and trim details.
  • Both are available with the same array of flooring, wall & window covering, counter top, appliance and fixture choices throughout.
  • Both can be prepped for tile, shake, composite, or any of the same roofing choices that site built homes use.
  • Both can be sided with anything the designer chooses including stucco albeit the sections are shipped stucco ready and the stucco is applied on site.
  • Both are available with drywall interiors. 
  • You can also design and build a hybrid super structure over a HUD MANUFACTURED HOME and conjoin two floors with an enclosed stairwell


  • and then unitize the two so they look like one dwelling

 

 

 

 


 

 

 

 

 

So now that you know

what can be done with

either a HUD

MANUFACTURED or a

MODULAR HOME. Here's

the legal definition of both

a HUD MANUFACTURED

HOME and a

MULTIFAMILY

MANUFACTURED HOME: 

 

 

 

 

 

California Department of Housing and

Community Development Study Guide for Obtaining a Dealer or Salesperson License 

 

 

 

What is a Manufactured Home? 

“Manufactured Homes” are single-family dwellings manufactured in a factory to preemptive federal construction standards. Available designs range from low priced single section homes known as “singlewides,” to upscale homes manufactured in several sections, and even multi-story homes. Shown at the right is a model designed for placement on a foundation with the garage constructed after the installation of the three-section home.

 

 

 

  • are transported on steel chassis which are never removed
  • are transported on their own wheels (which are most times removed in our area)

 

 

 

 

 

  • are set up on a series of steel pier and jack assemblies or concrete blocks with wood, plastic or poured in place concrete footing.

 

 

 

 

  • Today's California Housing and Community Development Departments (HCD), now requires that an "ENGINEERED TIE DOWN SYSTEMS" (ETS) be installed on any new or reset MOBILE or MANUFACTURED HOME.

 

  • Finally a MANUFACTURED HOME will have metal HUD TAGS aka INSIGNIA'S, DECALS, LABELS posted on the rear left of each section. The home will also have a "COMPLIANCE" certificate posted on the inside of the home in various places depending on the manufacturer 

 

 

 

What is a

Multifamily

Manufactured

Home? 

 

 

 

 

Just to dispel the notion that HUD MANUFACTURED HOMES are only available in one story single family homes there are also “Multi-Unit Manufactured Housing”.  

 

"A 'multifamily manufactured home' is a structure manufactured in one or more transportable sections to form two or more dwelling units into a single structure when installed. Multifamily manufactured homes may be used as a duplex, a dormitory, a hotel, efficiency units, or apartments, installed on a support system or foundation system. Depending on the situation, it may be required to comply with state and/or federal accessibility requirements." 

 

Modular Homes  and multi-story structures
 
Modular homes are residences constructed entirely in factories and transported to their sites on flatbed trucks. They are built under controlled conditions, and must meet strict quality-control requirements before they are delivered. 
 
They arrive in a variety of sections and are generally installed on a poured in place continual footing and stem wall foundation including interior footings by crane or in some cases with a series of tracks and rollers if cranes are inaccessible or impractical.
 
But here are some of the major differences:

 

  • They must conform to the same local, state and regional building codes as homes built on-site.
  • They are treated the same by banks as homes built on-site and are easily refinance-able. 
  • They follow the same market trends as site-built houses. 
  • They are easily customized albeit today's MANUFACTURED HOMES are as well.
  • They can be designed in multi-story (as much as several stories aka mid-rises), multi-family, residential or commercial apartments, condos, offices, mid-rise motels, etc.

 

A study by FEMA found that modular homes withstood the wind and water from Hurricane Andrew better than most other homes in the area. They take less time to construct than site-built homes, are more energy-efficient, and generally cost less.
 
I have been tracking a lot of posts written and contributed by many real estate professionals on various blogging platforms from Active Rain to Linkedin as well as several publications and even in some audio visual commentary be it news related, informative documentary or advertorial in nature. 
 
I don't claim to have all the answers, information or knowledge. However, given the 3 decades I've been in this industry I just thought I should put as much as I can out there for all to see in an effort to clear up many of the misnomers and misunderstandings both real estate, construction and the lay person may have developed during the course of their research.
 

"Modular", "Manufactured" "Factory Built"

 construction projects are becoming a very 

economical,  fast and efficient way to develop multi-

story Hotel and Resort Properties.

 

Call On Us Anytime To BE Your Go To Guys For

 

Information & Knowledge About

 

MODULAR CONSTRUCTION

Why To Choose Us?

John DL Arenden, Broker 

TAG Real Estate Sales & Investments

TAG (The Arendsen Group) Real Estate Sales & Investments is a full service, one-stop, turnkey, family owned and operated real estate brokerage, General Contractor, Manufactured Home Contractor, Developer, Investor, Property Manager, Interior Design, Engineering, architectural, Landscape design, Expert Witness, Consulting, Curative Title and Troubleshooting company with over 100 years of combined experience in the San Diego real estate sales, construction, design & development arena.

 

 

 

 

SUBSCRIBE TO MY BLOG VIA EMAIL: Enter your email address:

Delivered by FeedBurner

 

 

Comment balloon 23 commentsJohn DL Arendsen • August 04 2017 05:22PM

Comments

Excellent series.  Thanks John!

Posted by Carol Williams, "Customized Mentoring & Marketing Services" (U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business.) 3 months ago

A little long no doubt Carol Williams but there's so much information on this subject nowadays I just wanted to share what I know with other members on AR so they won't become a victim of misinformation should they ever have the experience in dealing with one. Thanks!

Posted by John DL Arendsen, Crest Backyard Homes designer & builder of ADU's (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 3 months ago

Yes, John, when people use terms like manufactured or modular I ask them if they know the difference so I can determine what they're actually talking about. Those terms are often erroneously used interchangeably.   Thanks for the great info!  

Posted by Carol Williams, "Customized Mentoring & Marketing Services" (U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business.) 3 months ago

My pleasure Carol Williams  and I hope it helps.

Posted by John DL Arendsen, Crest Backyard Homes designer & builder of ADU's (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 3 months ago

From your fingers to real estate agents' ears!! Not that I am even remotely deluded into thinking that a better understanding of two will make a difference in the way REALTORS list properties in MLS, but one can always hope. Excellent article and spot on.

Posted by Tracy Martin 3 months ago

Thanks Tracy Martin

Posted by John DL Arendsen, Crest Backyard Homes designer & builder of ADU's (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 3 months ago

Good information to help describe the difference between modular and manufacturered homes, John.

Posted by Myrl Jeffcoat, Greater Sacramento Real Estate Agent (GreatWest Realty) 3 months ago

Thanks for keeping all of us informed of difference between modular & manufactured homes, John DL Arendsen 

I will bookmark your post for future reference.

Posted by Mary Yonkers, Erie/PA Real Estate Instructor (Alan Kells School of Real Estate/Howard Hanna Real Estate) 3 months ago

Thanks Myrl Jeffcoat !

Posted by John DL Arendsen, Crest Backyard Homes designer & builder of ADU's (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 3 months ago

Interesting Mary Yonkers Might have to use the bookmark above the address bar.

Posted by John DL Arendsen, Crest Backyard Homes designer & builder of ADU's (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 3 months ago

John DL Arendsen This is very good report about the difference between a HUD manufactured home and a modular home.

Posted by John Pusa, Your All Time Realtor With Exceptional Service (Berkshire Hathaway Home Services Crest) 3 months ago

John DL Arendsen - I need to save this series for sure.

I'd appreciate if you also include the links to previous posts - so as to make a complete set.

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (eXp Realty) 2 months ago

Hi John

Wow, there is a lot of information here. If I ever need to try and explain this to someone who asks I'll just send them the link.

Jeff

Posted by Jeff Dowler, The Southern California Relocation Dude - Carlsbad (Solutions Real Estate ) 2 months ago

Thanks John Pusa 

Posted by John DL Arendsen, Crest Backyard Homes designer & builder of ADU's (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 2 months ago

Or I'd be happy to discuss it with them for you anytime as a friend Jeff Dowler 

Posted by John DL Arendsen, Crest Backyard Homes designer & builder of ADU's (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 2 months ago

Very timely post, John DL Arendsen ... as one of the LOs on my team is facing this scenario right now.  Will be passing this on to him ... thank you ...

Gene

Posted by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience (NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656) 2 months ago

Glad you can use this info Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi Just remember no two local ordaninances are alike. That stated, the HUD MFG Home falls under the Federal mandate and should be the same Nationwide.

Posted by John DL Arendsen, Crest Backyard Homes designer & builder of ADU's (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 2 months ago

That was quite extensive and informative. I don't do any business with these kinds of homes but we are seeing more of them now in Oklahoma City.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) 2 months ago

We would love to build a modular but haven't found the land yet. Still looking!

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) 2 months ago

Factory Built, be it HUD MFG, MOD or PREFAB, single, two or multi-story,  is hear to stay Joe Pryor 

Posted by John DL Arendsen, Crest Backyard Homes designer & builder of ADU's (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 2 months ago

Hang in there Sharon Tara there are big industry changes looming in the horizon. Time is on your side.

Posted by John DL Arendsen, Crest Backyard Homes designer & builder of ADU's (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 2 months ago

In the St Louis area, we have modular homes, manufactured homes and mobile homes are the wheels. The homes often come off the SAME assembly line, but some have wheels that are meant to only be used one time to transport them to the site and others have wheels, which while they may never be used more than 1 time and may be removed when they are put on the site, are designed to be used more than one time. If the wheels were designed for more than 1 time use, the home is considered personal property (like a car) and depreciates rapidly (like a new car depreciates when it's driven off the dealer's lot), while the other is real property and can appreciate.

Posted by Dale M Weir 2 months ago

Hmmm. Very interesting. I think I'll have to study that one a bit.

Posted by John DL Arendsen, Crest Backyard Homes designer & builder of ADU's (CREST BACKYARD HOMES, ON THE LEVEL GENERAL & FACTORY BUILT HOME CONTRACTOR, TAG REAL ESTATE SALES & INVESTMENTS) 2 months ago

Participate