Buyers ask us this often. The three terms get mixed up, and some of what people remember about mobile homes from decades ago no longer applies. Here is the plain version.
Site-built
A site-built home is framed, roofed and finished on the lot by a local crew. It is built to the state residential building code and inspected by the local building department as it goes up. Site-built homes usually take the longest to build, cost the most per square foot, and are what most people picture when they hear "new home."
Modular
A modular home is built in sections in a factory to the same state residential code as a site-built home, then trucked to the lot and set on a permanent foundation. Once the sections are joined and finished, a modular home is generally appraised, financed, taxed and insured like a site-built home. Cavco builds both manufactured and modular homes.
Manufactured
A manufactured home is also built in a factory, but to the federal HUD code instead of the state code. The HUD code is a national standard for design, construction, strength, fire safety and energy efficiency, and each section carries a red HUD certification label. "Mobile home" is the term for homes built before the HUD code took effect in June 1976. Homes built since then are manufactured homes.
A manufactured home is built on a permanent steel chassis that stays under the floor. Many older homes were left on that chassis on blocks with skirting and kept a vehicle-style title. That is where the old reputation came from.
What we do differently
Every home we sell is set on a permanent foundation designed for the site and inspected by the county or city. The home is then titled with the land as real property. In South Carolina that means retiring the home's DMV title so it is treated as part of the land. The result is a home that is financed, appraised and taxed with the land, can qualify for FHA, VA, USDA and conventional loans under each program's rules, and can be sold like other houses on land.
How the three compare
| Site-built | Modular | Manufactured | |
|---|---|---|---|
| Built to | State residential code | State residential code | Federal HUD code |
| Built where | On the lot | Factory, finished on site | Factory, finished on site |
| Time to build | Usually longest | Shorter | Usually shortest |
| Cost per sq ft | Usually highest | Usually in between | Usually lowest |
| Loans | All types | All types | Most types when on a permanent foundation and titled with the land |
| Inspections | Local building department | Plant plus local building department | HUD program in the plant plus local building department |
What about resale?
Resale depends on the home, the land, the location and the market at the time, so nobody can promise a number. A manufactured home on a permanent foundation and titled with the land is valued with the land, and appraisers compare it with similar homes nearby. It will usually not appraise the same as a brick site-built house of the same size, but it did not cost the same either. Keeping the home maintained and the title with the land helps.
What about quality?
Factory building has real advantages. Materials are stored indoors, walls are built on jigs so they come out square, and the plant works under a federal inspection program. The set and the site work matter as much as the factory build, which is why we use a licensed installer and handle the site finish work instead of leaving it to the buyer.
Which one is right for you?
If the budget allows and you can wait, a site-built or modular home gives you the most flexibility in design. If you want a new home on its own land at a lower cost per square foot, a manufactured home on a permanent foundation is worth a close look. That is what we build, and we are glad to walk you through one before you decide.
