Factory-built Housing Codes – What are the Differences?

As a manufactured home builder, we understand that the world of home construction can be overwhelming. One area that often confuses homebuyers is the array of building codes governing different types of homes. In particular, three common standards prevail: HUD (Housing and Urban Development), Modular, and ANSI (American National Standards Institute). Each of these codes plays a crucial role in ensuring the safety, quality, and compliance of homes. Let's examine the differences between them to help you make informed decisions when choosing your dream home.

HUD (Housing and Urban Development) Code:

HUD standards primarily govern manufactured homes (commonly referred to as mobile homes or trailers). These are the homes most frequently seen at our retail locations. Established in 1976, these federal building codes ensure that manufactured homes are constructed to meet specific safety, durability, and quality standards. Some key aspects of HUD standards include:

• Design and Construction: HUD standards dictate the design and construction of manufactured homes, including structural integrity, energy efficiency, and fire safety measures.
• Transportability: Manufactured homes built to HUD standards are designed to be transported from the factory to either the retail center or final destination. As such, they must meet stringent criteria to withstand transportation stress and ensure safe installation and setup.
• Quality Control: HUD regulations require rigorous quality control processes throughout the manufacturing process to maintain consistency and ensure compliance with standards. Each home includes a certification label (HUD Label) after final inspection at the build facility.

Misconceptions

• Don't Accrue in Value: The old saying that a manufactured home depreciates the moment it leaves the lot is a thing of the past. Many studies have shown that manufactured homes accrue at the same rate as traditional homes.
• Dangerous in Storms: Manufactured homes are built to wind safety standards based on where the home will be placed. Hurricanes in recent years have shown how resilient manufactured homes are in storms.
• No Curb Appeal: The days of the stereotypical "rectangle box" manufactured home are long gone. Modern construction of manufactured homes include a variety of roof options, siding, and skirting – plus outdoor living sections – that can match the look of any aesthetic.

Financing

Manufactured home financing works slightly different with loan options including FHA, Fannie Mae, Freddie Mac, USDA, VA, and Chattel. Chattel loans are personal property loans that are slightly different than traditional mortgages. The biggest difference is the loan is for the home only without being attached to the land. Though there are land and home loan packages available, a chattel loan is a great option for those who don't own their land in a mobile home community for example, or for those who already own their land but want to trade-in their existing home.

Modular Homes:

Modular homes are constructed off-site in a controlled factory environment, much like manufactured homes. However, they differ in their compliance with building codes. Instead of adhering to the HUD code, modular homes are built to meet state and local building codes, which often align with International Residential Code (IRC) or International Building Code (IBC) standards. Depending on installation requirements, the difference in codes can be seen in the option for off-frame or on-frame construction, meaning the home can be built with or without the steel frame underneath. The other noticeable difference in code is that modular homes almost always require stem-walls and permanent foundations. Other key characteristics of modular homes include:

• Customization: Modular homes offer extensive customization options, allowing homeowners to personalize their dwellings according to their preferences and needs.
• Quality Assurance: Like manufactured homes, modular homes undergo rigorous quality control measures during the manufacturing process to ensure compliance with building codes and industry standards.
• Transport and Assembly: Once constructed in the factory, modular homes are transported to the site in sections and assembled on a permanent foundation. This method typically results in faster construction times compared to traditional on-site building methods.

Misconceptions

• Aren't built to last: Modular homes are built sturdy for transport using precise measurements within the factory making them more reliable than traditional built homes. The weather controlled environment provides an extra layer of protection against water damage and mold.
• Lowers neighborhood value: Appraisers use neighboring homes in determining value, so modular homes do not affect neighborhood value differently than a comparable stick-built home.
• Made with cheap materials: Modular homes are built using the same materials as stick-built homes. Homes can include real stone countertops, hardwood floors, standing bathtubs, marble showers, and more!

Financing

The full range of loan opportunities available for stick built homes are available for a modular home including conventional loan, FHA, VA, USDA, and more.

ANSI (American National Standards Institute) Code:

ANSI standards primarily pertain to recreational vehicles (RVs) and park model homes. These standards ensure that RVs and park models meet specific criteria for safety, quality, and performance. Key aspects of ANSI standards include:

• Design and Construction: ANSI standards outline requirements for the design, construction, and installation of RVs and park models to ensure occupant safety and structural integrity.
• Mobility and Portability: RVs and park models are designed for mobility and portability, allowing for easy transportation and setup in various locations such as RV parks, campgrounds, and recreational areas. These homes are designed for seasonal use, not as a permanent residence.
• Functional Requirements: ANSI standards address functional requirements such as heating, plumbing, electrical systems, and ventilation to ensure that RVs and park models provide comfortable and livable spaces for occupants.

Misconceptions

• It's cramped inside: Despite being just under 400 square feet, park model homes offer floorplans with one bedroom, bathroom, kitchen, and living area. Some floorplans feature a loft for a guest.
• Can't be stylish: Many of the materials featured in our manufactured and modular homes are available in ANSI homes. Exterior options can also be customized including a factory-built front porch.

Financing

Similar to manufactured homes, ANSI homes are most commonly financed using a Chattel or personal loan.

In summary, understanding the differences between HUD, Modular, and ANSI codes is essential for navigating the world of manufactured and modular homes. Whether you're considering a manufactured home built to HUD standards, a modular home customized to your specifications, or an RV or park model complying with ANSI standards, each type of home offers unique benefits and considerations. By familiarizing yourself with these codes, you can make informed decisions and find the perfect home to suit your lifestyle and preferences.