This month I’m closing my second transaction for the year where Commerce Bank was the lender. Not all lenders are equal, and Jim Bailey (the loan officer) has done an amazing job. Today his bank sent me this really helpful little read on the difference between a Manufactured Home and Modular Home.

Thanks Jim… I have a Modular Home attached to a permanent concrete foundation coming up for sale next week – this will be really helpful for my buyers.

Modular Homes – Not the Same as Manufactured!

Whether using Agency or Government loan programs, Manufactured Homes are notoriously difficult to finance given the additional property-specific guidelines that are applied.

Modular homes are often confused for Manufactured homes, but in reality there are major differences on how they are viewed from a property eligibility standpoint.

Modular Housing refers to structures constructed according to state and local codes off-site in a factory, transported to a building lot, and assembled by a contractor into a finished house. Although quality can vary, all of the materials – from framing, roofing and plumbing to cabinetry, interior finish and electrical – are identical to what is found in comparable quality conventional “stick-built” housing.

Manufactured Housing refers to finished structures that are transportable in one or more sections, built to HUD building codes (and therefore will feature a HUD “tag”), and normally feature a permanent chassis with wheels that are removed so the home can be permanently affixed to the land.

Now that we know the difference between these property types, the kicker: Modular homes are subject to the same property eligibility as a regular Single Family (“stick”, or site-built) property – meaning fewer property-related requirements to worry about when compared to true manufactured housing!

Information provided by:

Jim Bailey
Mortgage Advisor
255 East Monroe Drive, Suite 2
Fort Collins, CO 80525
tel 970-541-4319 | fax 970-541-4537
nmls #152579
jbailey@commercemtg.com