Manufactured vs Modular Home Prices

[Hueffenhardt]

OK, I know how manufactured homes are built to HUD code and Modular homes are built to IRC or UBC code. I also know that many manufacturers of manufactured homes also build modular homes. Sometimes, these plants can build "basically the same" house to either code.

My question is if two homes had all the same specs (2X6 exterior walls, 8' exterior walls, same insulation, carpet pads, etc) except for the differences due to one being built to HUD and one to IRC, would they cost the same? If not, why not? Is the difference in price really due to the difference in construction due to code? Or due to the fact that manufactured homes are on steel girders? Or due to the reputation that "mobile homes" have? Or, is there some substantial reason why modular homes are better? Or, is my whole premise wrong and they really would cost the same? And, if they would cost the same, then why wouldn't everyone go modular since they are often easier to get mortgages for?

I am reading both Grissim guides right now.

[rmurray]

In the scenario you have proposed, same plant, same upgrades, same floor plan. The modular DOES cost the dealer more money. The cost difference is attributed to the code difference (different specs and different materials) , different inspection procedures, different government certification costs, different freight costs and different taxing methods. Plus to you the set up costs on your land are much higher because the required minimum foundation is of much higher standards and the true mods have NO frame and ship on a lowboy trailer and will require a costly crane to set them. Sales taxes on the mod in most states is only on the materials and collected by the plant from the dealer. The dealer collects no sales tax from you directly. The manufactured home is titled like a vehicle and sales tax is charged to you on the whole price (materials, labor, profit and all).

The added cost is generally about 10 to 20 K which will be mostly offset by the elimination of the need for underpinning, slightly lower sales taxes, lower interest costs and higher resale prices in the future.
Remember that HUD regulates and enforces its building codes on manufactured homes and do NOT involve themselves with modular homes. The states all have agencies that directly regulate the modular homes and often do not have as good of enforcement procedures to enforce compliance to the standards as HUD has. If you pick the right builder and right manufacturer, this should not be much of a problem. Much like stick builders the buyer is more on his own and government cannot not do much to help if there are violations.

Your next question, "Why would ANY one buy a manufactured home?" Many folks still place homes on leased or borrowed property and cannot take advantage of the mortgage benefits of the mod. These folks need to finance using the title as collateral. Often they are paying cash and not intending to resell and could care less about those modular advantages. The tradition of the manufactured home is FAST and easy which is more important to some than other considerations.

You will probably learn a lot more in those 2 books you are reading. Remember when researching here to use the search function on these forums be sure to set your search to all dates to take advantage of the tens of thousands of questions and answers that have been posted here in the last many years. Ask all you want here.

Your reading will make you aware that the most important decision you have is which dealer/builder you chose. Good Luck with your quest.

[Hueffenhardt]

Thank you rmurray for your informative post.