When it comes to homes built off-site and then transported to their permanent location, the terms mobile home, manufactured home, and modular home are often used interchangeably. However, while these types of homes share some similarities, there are distinct differences between them that affect their construction, placement, and financing options. Here’s a breakdown of what sets each type apart.
Mobile Homes
A mobile home is a structure built in a factory and then transported to a chosen location. Once it arrives, it is often placed on a foundation made of metal piers or tie-downs instead of a traditional concrete foundation. Historically, “mobile homes” referred to homes built before June 15, 1976, when federal regulations for manufactured homes were standardized.
These homes were designed for mobility, and some may still be moved after they are set up, though this is not always the case today. Mobile homes tend to be less expensive compared to their manufactured or modular counterparts but may not offer the same long-term durability or value retention.
Manufactured Homes
A manufactured home is very similar to a mobile home in that it’s also built in a factory and delivered to its permanent site. However, the key difference lies in its regulatory framework. After 1976, homes built to meet the U.S. Department of Housing and Urban Development (HUD) standards are considered manufactured homes, even if they are still mobile.
Manufactured homes are usually placed on blocks, piers, or a permanent foundation and are typically not designed to be moved after installation. They are generally more expensive than mobile homes, with prices often averaging around $118,000, according to the U.S. Census Bureau as of 2024. Manufactured homes are more likely to hold their value over time compared to mobile homes, but they still depreciate faster than traditional homes.
Modular Homes
A modular home is another off-site constructed home, but with a significant difference: it is built to meet the same local building codes as traditional, site-built homes. Modular homes are often assembled in sections or “modules” in a factory, then transported to their designated site and assembled into a permanent structure.
Unlike mobile and manufactured homes, modular homes usually rest on traditional foundations, which can include basements or crawl spaces. This allows for greater flexibility in terms of customization and design. Modular homes typically cost between $180,000 and $360,000, according to Angi, and are considered more similar to site-built homes in terms of quality and stability.
Factors to Consider When Buying a Mobile or Manufactured Home
When considering whether to buy a mobile home, manufactured home, or modular home, there are several important factors to keep in mind. These include location, size, whether to buy new or used, and the long-term costs of ownership.
Location
The location where you will install your home can have a big impact on the overall cost and feasibility of your purchase. You may choose to:
- Buy a piece of land where your home will be located
- Rent a plot in a mobile home park
- Install the home on land you already own
If you decide to buy land, you must also research zoning laws, utility hookups, and the availability of infrastructure in your area. Neighborhood quality is also important, as the location affects both your living experience and potential property value.
Size
Mobile, manufactured, and modular homes come in a variety of sizes, so it’s important to decide what suits your needs. Larger homes require larger plots of land and are more expensive to purchase.
Mobile homes are usually categorized by width, with two common sizes:
- Single-wide homes: Typically under 15 feet wide
- Double-wide homes: Around 30 feet wide
Single-wide homes can be a more affordable option, but some towns or cities have restrictions on placing them in certain areas. Research local zoning laws and regulations to ensure your home type will be allowed.
New vs. Used
Another key decision when buying a mobile or manufactured home is whether to purchase new or used. Used homes are often available at a lower cost, but they may show signs of wear and tear, especially if they haven’t been properly maintained. Additionally, homes built before 1976 may not meet modern HUD standards, which can limit your financing options.
If you go the used route, it’s essential to have a professional inspection to assess the home’s condition and avoid costly repairs down the road.
Long-Term Costs
Owning a mobile or manufactured home comes with a unique set of long-term costs. One key consideration is mobile home insurance, which provides coverage for your dwelling and personal property, much like traditional homeowners insurance.
Mobile home insurance policies generally cover:
- Damage to the home
- Loss or damage to personal belongings
- Liability coverage (if someone is injured on your property)
However, standard mobile home insurance might not include coverage for disasters like hurricanes, earthquakes, or floods. You may need to purchase additional coverage, depending on where you live. As with any insurance policy, the cost will vary based on the coverage you select, your home’s location, and its condition.
Conclusion
Mobile, manufactured, and modular homes can offer a more affordable alternative to traditional site-built homes, but each type has its own set of advantages and disadvantages. Whether you’re looking for a budget-friendly option or a more permanent housing solution, it’s crucial to research your financing options, determine the right location for your home, and choose the size and condition that fits your needs. By considering all of these factors, you can make a well-informed decision that aligns with both your financial goals and lifestyle preferences.
