Question: Will American Family Funding lend on modular homes? What about site built or manufactured homes?
Answer: Yes American Family Funding will lend on a modular homes and site built homes, but currently NOT manufactured homes. It is important to understand the differences between them.
What Are Modular Homes?
- Modular homes are built in sections at a factory.
- Modular homes are built to conform to all state, local or regional building codes at their destinations.
- Sections are transported to the building site on truck beds, and then joined together by local contractors.
- Local building inspectors check to make sure a modular home’s structure meets requirements and that all finish work is done properly.
- Modular homes are sometimes less expensive per square foot than site built houses.
- A well-built modular home should have the same longevity as its site-built counterpart, increasing in value over time
What Are Site Built Homes?
- They are constructed entirely at the building site.
- They conform to all state, local or regional codes where the house is located.
- Often called ‘stick-built’ houses.
- A well-built, cared for site-built home generally increases in value over time, although its location plays a key role in value
What Are Manufactured Homes?
- Formerly referred to as mobile homes or trailers, but with many more style options than in the past.
- Manufactured houses are built in a factory.
- They conform to a Federal building code, called the HUD code, rather than to building codes at their destinations.
- Manufactured homes are built on a non-removable steel chassis.
- Sections are transported to the building site on their own wheels.
- Multi-part manufactured units are joined at their destination.
- Segments are not always placed on a permanent foundation, making them more difficult to re-finance.
- Building inspectors check the work done locally (electric hook up, etc.) but are not required to approve the structure.
- Manufactured housing is generally less expensive than site built and modular homes.
- Manufactured homes sometimes decrease in value over time.
