Definitions of Factory Built Homes

Many types of structures are factory built and designed for long-term residential use. In the case of prefab and modular homes, the units are built in a factory, transported to the site, and installed. In panel and pre-cut houses, essentially flat subassemblies (factory-built panels or factory-cut building materials) are transported to the site and assembled. The different types of factory-built homes can be summarized as follows:

Prefabricated houses:

These are houses built entirely at the factory, transported to the site, and installed under a federal building code administered by the United States Department of Housing and Urban Development (HUD). The Federal Manufactured Home Construction and Safety Standards (commonly known as the HUD Code) went into effect on June 15, 1976. Federal standards govern the design and construction of manufactured homes, strength and durability, portability, fire resistance, energy efficiency and quality. The HUD Code also establishes performance standards for heating, plumbing, air conditioning, thermal, and electrical systems. It is the only national building code regulated by the federal government. On-site additions, such as garages, decks, and porches, often add to the appeal of manufactured homes and must be built to local, state, or regional building codes.

Modular homes:

These factory-built homes are built according to the state, local, or regional code where the home will be located. The modules are transported to the site and installed.

Panelized Houses:

These are factory-built houses in which the panels (a complete wall with windows, doors, wiring, and siding) are transported to the site and assembled. Homes must meet state or local building codes where they are located.

Precut houses:

This is the name of factory-built homes in which building materials are factory cut to design specifications, transported to site, and assembled. Precut houses include kit, log and dome houses. These homes must meet local, state, or regional building codes.

Mobile homes:

This is the term used for manufactured homes produced before June 15, 1976, when the HUD Code went into effect.

Park Models / RV’s:

These class of factory-built homes are not Manufactured Homes by our definitions. These homes are not built to HUD code or local building codes. They are not eligible for conventional or FHA / VA loans whether they are on their own lot or not.

These definitions are important because they affect the mortgage programs that will be available to you. If you have any questions, feel free to call or email us.