Modular or manufactured?

[Lawrence R.]

Thanks George, but I probably should add a few items if the explanation is expanded beyond this thread. How about:

Virtually all homes are stick-built. Some are built inside (factory-built) and some are built outside (site-built).

A factory-built home constructed in compliance with the HUD code is a manufactured home.

A factory-built home constructed in compliance any code other than the HUD code is a modular home.

A factory-built home constructed prior to June 15, 1976 on a permanent chassis and in compliance with no particular code is a mobile home.

And if they are on a permanent chassis after 76, and have no HUD plates?

 

[Rich Heyn]

And if they are on a permanent chassis after 76, and have no HUD plates?

Could be a HUD code home with missing plates. Or, it could be the dreaded "on-chassis modular"; a modular home built on a permanent chassis. I say "dreaded" because an on-chassis modular often walks and talks much like a HUD-code home but the associated loan is not eligible for purchase or securitization by Fannie Mae.

The doomsday scenario here is that that appraiser incorrectly identifies and reports the on-chassis modular as a manufactured home; the loan goes south and Fannie forces the lender to repurchase the loan. Lender sues appraiser to recover losses.

 

[Lawrence R.]

Could be a HUD code home with missing plates. Or, it could be the dreaded "on-chassis modular"; a modular home built on a permanent chassis. I say "dreaded" because an on-chassis modular often walks and talks much like a HUD-code home but the associated loan is not eligible for purchase or securitization by Fannie Mae.

The doomsday scenario here is that that appraiser incorrectly identifies and reports the on-chassis modular as a manufactured home; the loan goes south and Fannie forces the lender to repurchase the loan. Lender sues appraiser to recover losses.

A+. we had a thread about that about a week ago. Easy to get sued on that one. Fannie won't touch em, but probably has quite a few on their books.

 

[Mike Boyd]

I agree with Rich but the statements begs the question: How do you know under which code it was built? Many mass builders employ "partial" modular techniques.

I do not have any problems distinguishing between manufactured and modular but there could easily be problems distinguishing modular from site built...with an older home. I have not seen a recognizable true modular home in my market area for many years, although I know, simply from experience that there are are many.

 

[Rich Heyn]

I agree with Rich but the statements begs the question: How do you know under which code it was built? Many mass builders employ "partial" modular techniques.

I do not have any problems distinguishing between manufactured and modular but there could easily be problems distinguishing modular from site built...with an older home. I have not seen a recognizable true modular home in my market area for many years, although I know, simply from experience that there are are many.

Mike,
I'm not sure what you mean by "partial" modular techniques. If you are referring to the assembly of wall or floor panels in a factory, that is not "modular" construction. Modular homes are, for the most part, fully finished in the factory. Think, "are the interior walls painted at the factory?"

As to identification, modular homes are nearly always shipped with a data plate of some sort that identifies code compliance. Most local building inspectors will not allow a modular home to be sited in their jurisdiction without evidence of code compliance. This is distinct from the HUD code, which preempts local building codes.

 

[Couch Potato]

I do not think any home not built to HUD code is a modular home.

Tom

Actually, if it is built to the HUD code, it is not a modular home. A modular home may look like a manufactured home (built to HUD code) or it could look like this one:

 

[Mike Boyd]

Thanks for the clarification, Rich. I did not know that a modular had a data plate describing code compliance. Is a specific location required for that data plate?

 

[Mr Rex]

http://www.ibts.org/mod_home.shtml

 

[Lawrence R.]

Thanks for the clarification, Rich. I did not know that a modular had a data plate describing code compliance. Is a specific location required for that data plate?

Our state has its own Modular Housing Program. I assume most/many do.

In such a case, we require architect's plans to be pre-approved, and only a licensed residential contractor(or higher) can build one.

Our label that shows adherence to the codes is located on(one time next to) the breaker panel.

Once finished, there is no requirement from our state to continuously identify the home as modular built. Therefore, many people remove the labeling(which is not much more than a sticker from the factory)

It has been argued, and I can see the point, that a modular home only exists in South Carolina(statutorily at least) until it is completed. If necessary, one would have to go to the local planning office to determine if a home was modular.

 

[ezradams]

Guys,

I'm scheduled to visit 2 modular home builders on Tuesday (may be getting into that business to earn a few extra bucks.) So far, it appears from their plans & specs as well as an inspection at time of a set up, they are built 99% identical to on-site construction. Factory built homes can be HUD compliant as well as compliant with local codes at the same time. Which takes precedent in the determination of Modular vs. manufactured?

I've been in the appraisal business for the past 15 years in the South Jersey area and have seen my share of factory built homes (no mobiles). I'll bet a couple modulars have slipped by my eye...they can look exactly like on-site construction. (Differences can be hidden by trim.)

The big question is: What does the local market accept? If they're built the same and present the same as on-site, there should be no difference in marketability or value. A poorly constructed and designed modular will suffer in the market just like a poorly constructed and designed site built dwelling will.

Dan