Modular Home Companies Are Lying! 

When I was ten, around 1981,:my parents built a house. My mom found a company with a huge catalog of houses where you ordered the house and all the walls came ready and all the supplies came with it but they and their friends built it. It's survived several hurricanes and is now valued at $500,000.

After watching this, I have come to the conclusion that it would be a lot simpler and cheaper just to live in a minivan. Car payments and insurance cost less than a mortgage/rent and utilities.

The easiest way to tell if it's a hybrid or (cross mod) look for the red colored HUD tag on each piece. It's located on the vinyl siding (riveted). A real modular home will have a sticker with the state seal (where it's being sold to) located inside the kitchen cabinets or at the breaker box or in the master bedroom closet. Never buy a mod stickered for another state. Will never pass inspection. We sell manufactured houses in Virginia, but we're close to TN and KY. So each modular has to be construction to that states requirements.

I picked up a manufactured home for cheap in 2009. It was a repo that was never lived in. I had it set on a foundation so according to the county, it's a house. It's a rental that has paid for itself already. It sits on it's own acre.

Purchased a manufactured home about 7 years ago and just paid cash for it. We love our home . The taxes are less and we made many upgrades. Not planning on selling and don't need to refinance as it is paid off . I probably wouldn't recommend them to everyone but it is exactly what we were looking for. Always do your homework before you purchase. Thanks for explaining some of these issues. I am sure it will definitely help people.

The mortgage industry needs to catch up to all these new types of housing. Bottom line many Americans cannot afford a site built home.

I was a commercial drywall contractor and built my own house and saved a TON of money. Instead of cheap and weak, mine is built out of heavy Guage steel studs that don't warp and bugs can't eat.

She's got the "shady used car salesman" acting down 🤣

I appreciate the re-enactment of what to expect from an agent trying to ease questions away from technical classification. Thanks Kristina, you're the RE friend everyone wishes they had in their corner

You are a genius. I am a loan officer out here in So California who is genuinely interested in getting families in affordable homes out here in the wild west. I do know the difference in definition. I try to protect my clients. I am now a fan.

All these corporate crooks need to be reigned in HARD

We bought a manufactured home 20 years ago and put it on a foundation. Several years later we needed to refinance it but when they did the appraisal it was way off. We had a mortgage of $200,000 including the over 3 acres of land. The appraisal came back as $100,000. We ended up filing for bankruptcy less than a year later.

I built both for many years. Modular homes use the same materials as an on site built home does. Manufactured homes use cheap materials like 2x3 walls instead of 2x4 walls. 2x2 rafters vs 2x4 rafters. etc.

I really appreciate having someone out there looking out for those of us who will need to be looking into affordable housing options rather than catering a bunch of videos towards investment bros. Telling us "how you can make a million dollars by investigating in a $400,000 home for poor people."

My wife and I were going to purchase a modular home but we couldn’t find any affordable land in the area we wanted to build it on. So we ended up buying a house, which turned out to be the right move for us.

All depends. Three years ago my realtor found me an older manufactured home set on a solid foundation in a small town for $70,000. The lot is spacious and came with a two stall two story garage. The lot is on a paved street, all utilities in. So far everything is great. My total expenses for utilities, insurance, and taxes are less than $400 a month which is lower than most lot rents in mobile home parks. I hear of reports of lot rents in Florida having gone up to $1,000. If your retired l would recommend looking for a house in small towns, there are a lot of bargains out there.

This Housing market collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.

Here’s the problem, this is all a word game, it’s a semantic trap designed to confuse and confound the unsuspecting consumer. Bottom line, and please pay attention to the following as this should clarify things for everyone: Manufactured housing: The definition of manufactured is simply anything that is built by hand, so in the simplest terms, even traditional, on site built homes are technically “manufactured”. What it has been designed to mean for the intents and purposes of trailer home building industry is the new way of calling trailer homes to shift away from the rightfully earned perception that trailer homes, are cheap, sub par dwellings marketed to low income consumers. If it’s built on a trailer, it’s a trailer home, for you, for the banks, for the municipal authorities and the real estate marketplace, period, end of story, and nothing they can call it makes it otherwise. Manufactured = Trailer home and these are by economic convention the lowest quality built residential structures on the market. Modular. Modular by definition is anything composed of individual modules. These are alway built off site in a factory, delivered to the final build location to be placed on a permanent foundation as a single or multiple modules. Modular homes are also technically manufactured, but the principal things that differentiates them from manufactured “trailer” homes, is that these 1) are not built on trailers, 2) Are built to meet or exceed and very often way exceed IRC and any other building code. Pros & Cons. (This is by no means a comprehensive list of all, but the key and most important ones between the 2): Manufactured “trailer” homes. Pros: 1)They are traditionally for the square footage of living space and amenities provided, the most affordable option for low disposable income home buyers. 2) They still are relatively easy to transport and typically do not need a permanent foundation. 3) Easy and quick set up time, usually in a matter of a day or 2 from delivery it is move in ready. Cons: 1) The lowest quality built of all permissible dwellings. 2) Unless you own the land it sits on, and provided that your local municipal authority allows for a manufactured / trailer home to be placed upon that property on a permanent basis, these homes are a depreciating asset. 3) Initial financing or refinancing are completely different from traditional or modular homes, more restrictive and less advantageous. 4) Long term ( lifetime costs of upkeep, and Insurance) insurance is a bear in terms of each premium dollar spent does not provide for the same level of coverage as for any other type of dwelling. Upkeep and maintenance is constant as the lower quality materials typically used wear and tear at a much faster rate. 5) Limited design options. 6) Stigmatized as being tornado magnets and low class dwellings. Modular. Pros: 1) As stated earlier, normally built better than IRC. 2) Typically built, delivered and move in ready much faster that traditional, built on site homes. 3) Getting much easier to finance and refinance conventionally. 4) It is an appreciating asset, sometimes with greater and faster appreciation rates than conventionally built homes. 5) Design options are virtually limitless and far greater than those possible with manufactured/trailer homes. 6) Gaining in popularity, cache and status. Cons. 1) Complicated and costly to transport and set up. 2) Limited range of delivery as cost efficiencies decline with each mile of distance from factory to final location. 3) relatively newness in concept and an often, bewildering number of available options and manufacturers. 4) Although all home buying decisions involve risk, and due diligence in selecting the right builder, the modular industry is rife with untested or even in name only sellers. Moral of the story as with any story involving the shelling out of considerable funds is BUYER BE WARE.

Biggest difference with a modular home is it does NOT use the frame it is transported on as part of its permanent support structure where a manufactured home is built on a metal chassis. Another big difference is usually the roof on a modular home the rafters are hinged and the roof is fastened together in the center giving a normal steeper pitched roof while the manufactured home is built with the rafters and roof pitch fixed at the factory with a much less angle of pitch. Also modular homes do have access to the attic area where aa manufactured home there is no attic access. Also many modular homes have actual dormers with windows in the attic area. You will not see actual real functional dormers on a manufactured home.

I went under a customer's newly installed modular to repair a drain leak. The drains from the fixtures was connected by the delivery driver. He also laid the sewer drain . Nearly all his joints were leaking, wrong fittings used and not pitched properly.

A dealer in Delaware that starts with Clay and ends with ton is doing land home packages and charging up to the low $300's for manufactured homes on a lot, usually a half acre... The people buying these homes are going to regret it in the future.

You are so right! I nearly bought a home from Oakcreek homes in Midland Tx that was in the manufactured homes catalog but the swore they could build it modular and the website point out homes that they will convert to modular. I didn’t feel right about it since my lender was unsure about specs as well. As I did more homework (and listened to you, Kristina) I realized it would be a bad investment.

Feel like I should buy a foreclosure, gut it, and redo it cause this is so complicated.

We have a Clayton Home, 1700 SF. It Was built in 2008 and has factory upgrades such as real wood cabinets and some drywall in the main parts of the house. We love our home and it doesn’t look like a “mobile home “ inside. We bought it with land, septic system, metal roof, the works. Financed for under 3%.

I was a mortgage broker in Massachusetts. We have a list of modular companies at the time I was active. There was 4 out of New Hampshire. Mobile homes nope. Call them anything you want we never finance them

I am here in Florida. We just changed our homeowners insurance policy as the old one was too expensive. We are in a regular built on site home. Before we could change our policy they required 2 things: a Wind mitigation report, and a 4 point inspection. The wind mitigation requires being able to get into the attic and take photos of the rafters where they attach to the walls. In many mobile homes I know this is NOT possible yet it is required... FYI.

I spent 2 years and $100K upgrading a manufactured home in Grass Valley, CA into a really cool little place, with new large redwood deck, new windows, plank floors etc. In the end, we got $430K for a manufactured home on 3 beautiful acres, cedar shingles, cedar stained trim all around, completely new siding. To be honest, I sold as I was worried about the price appreciating any more due to lending issues and perception from buyers. The new buyers I think got an FHA loan for 97% of the purchase price, so FHA does do loans on manu homes. Its all so confusing and best to own a newer slab on grade home as we do now.

Love this video! You played the part of the shady real estate lady so well. Plus excellent info. 👍

In the 1950s, my dad bought a house from Sears/Robuck. He said all the wood and and everything needed to build a house was delivered to his land by several trucks. Then he hired people to build it. The cost: $14K. plus whatever he paid to the construction crew who worked for about 3 weeks. He sold the house for $630k.

This garbage seems to have been going on a long time! I had no idea how much it impacted but thank goodness I walked off the lot! (Clayton, I left bc I was seeing too many lazy building mistakes. If they couldnt make the seams on counters and such line up right I didnt want to find out what *else* wasn't that I couldn't see. Trust yourself, shop smart!)

I used to do closings for a manufactured home dealership in Texas. There is a difference when it comes to paperwork. For one, TDLR are the ones inspecting the homes and making sure they are built and set to code instead of TDHCA, who only inspect manufactured homes. Also manufactured homes come with HUD tags where as mods don’t. Not saying it doesn’t still look like a manufactured home, but there are differences. Our financing and inspections changed based on what people were buying. Now with that being said, would I have bought a mod instead, hoping it appraised like a regular house later on? No. We mainly sold them to people who were interested in a manufactured home but the city or HOA would only allow mods. Some people bought them because they “didn’t want a mobile home”, and I never had the freedom to tell them it really didn’t matter. It mattered on paper, but not really in the real world. Hope that helps people who have dealerships tell them it is different. It is, but not enough to make it a better option.

Once again Thank You SOOO Much for talking to me and plus this video! Ms. Kristina they're working better for me since I spoke to you! Thank You So Much!

Thank you for a masterpiece video. I am appreciative for your brilliance in the real estate/home market! You have given us extremely important information!

As a contractor who has experience with 'modular and manufactured ' homes, you will be far better off building your own home. Your dollar will go much farther building your own. Your quality will be far superior and your headaches fewer. Run, don't walk from these homes. Buyer beware!

Hilarious !! Kristina you out-did yourself on this one! Thanks for the info!

I recently commissioned a house that was built mostly at a factory and transported to my property (deftly avoiding the discrete categories of "modular" vs "manufactured"). It was delivered in two halves. I was told it was modular instead of manufactured because they were taking it off the wheels and putting it on a foundation rather than leaving it on the wheels and strapping it down. This was a requirement for the area where the property is located. Either way, the financing was normal and the house was built to above code for stick-built homes

So many people are confused with the terms, "manufactured" (old school title: Mobile Home) except now the industry calls them "manufactured" homes to try and make them seem more upscale. Grew up in different Mobile Homes most of my early life. Nothing wrong with calling them what they are, a house on wheels. lol

As an appraiser, generally I can tell by looking at the exterior as the shape of a manufactured (MFG) home is best described as a box. Some people have gone to great lengths to hide that a home is a MFG by removing the HUD tags on the outside, and removing the data plate inside. Simple way to tell is when I look in the crawl space, if I see a steel holding up the floor its a MFG EVERY. TIME! Also, even if you have a MFG that you've done a stick addition too, I still have to use the MFG appraisal form and use other MFG sales for comps.

This is a really great explanation of the difference between modular & mobile homes. We purchased a true modular home which was factory built & site assembled. It's approx 1250 sq. ft. It was built in 2000. We are the 3rd owners. It's a metal frame with the same structure of each module with of course drywall. This home is structurally very solid. The walls are very strong & was rated to withstand 150 mph winds. We paid 123k. Purchased 11 years ago, it's the most modern looking house in a neighborhood of brick & wood frame homes. Ours is a stucco which actually has vinyl sheething. Our current appraisal is 249k

Very informative video. This is your strength. Thanks

FYI, I have built a few websites, and there is code that most coders put in their websites that updates the copyright for the website to the current year. Websites are often constantly being updated, so it makes sense to have the website copyright be the same as the current year. That doesn't mean the company was founded that year.

I love how you dig for the truth. The devil's in the details when it comes down to real estate. You really do right by your viewership. Of course it's just a fragrant wisp of wishful thinking, but I'd love to see you have a confab at the same table with other special gals I follow; Alison Arngrim, Eve Plumb, Jeanine Pirro, Elizabeth Johnston, Sarah Douglas, etc. (A better view than 'the view'.) Sigh... Thanks for being beautiful Kristina!

Kristina u are a trip,,terrific education...people need to listen ur great !!!!

Huh, I wonder if I have one of those hybrid manufacturer homes. We bought it because it was a manufacture home that qualified for conventional loan because of our foundation.

Over the past couple of weeks, I visited a Champion home retailer twice... I initially walked in looking for a modular home, for the financing, appraisal, and insurance reasons highlighted in this video. The salesperson said that what they sold were manufactured homes that could be built to "modular spec" for an additional charge. Is it possible this "modular spec" jargon is just a rebranding of "modular hybrid"?

It’s refreshing to just tap a video and the video delivers as advertised. Very knowledgeable and articulate…..well done video.

This is GREAT As an Appraiser of 20+ years and FHA Approved I have to laugh very hard as I watch this All buyers need to watch this

I am commenting from right here in Baton Rouge, LA. I work for a PREFAB STEEL construction company here, locally. When we order a STEEL PREFAB building for any use at all, the first thing I must provide is the building's location zip code. Every single steel manufacturer in the U.S. must know the zip code first because ALL details regarding BUILDING CODES for that building's location is in the computer hardware, thus the manufacturer can ONLY provide drawings, specs, and a building product meeting ALL code requirements FIRST and foremost. If any building of any kind is not 100% up to code then no one is is getting a permit to "occupy" the building. The permit to build can be provided but if not up to codes it WILL NOT PASS inspection no matter what kind of building it is. BUILDING CODES NOTHING MORE IMPORTANT.

Just because a company has a new website or is new, shouldn't be a red flag. With mergers and acquisitions heating up and as modular is experiencing explosive growth in the construction industry, you're going to see new names with apparent "young" companies. The real issue is what building standards and code compliance that factory adheres to. If they can't or won't tell you, RUN.

I love your channel as we are looking into buying land a putting a modular home, not a manufactured home. Keep up the great work!

I have audited both modular home builder and manufactured home. Modular home is built so strong that it can be lifted off from the foundation in one piece by a couple of front loaders. Manufactured home is a flimsy version of a standard shipping container.

Yeah... That's pretty shady...

Had a salesman who worked at a well known mobile home company tell me that modular homes are essentially the same as mobile homes- just not on wheels.

Thanks sweety! Your acting is on point!

Be very careful,make sure the community has a cap on monthly charges ,if they don’t,get out of there as fast as you can,don’t go into a community where you rent or lease the land,run away,I know,I lived in one ,wound up selling for a loss just to get out

This was short and to the point. Great information. I have been interested in a modular home for some time. I now realize I have a lot of work to do.

Lol I love the bad seller character. Great video and great info

My brother put down a sizable down payment for a modular to replace a house that was damaged by sandy in Jersey . The government granted half of the cost and required this specific manufacturer to build it . He also had to pay upfront with a local contactor to tear down his existing house which he did . As you can see it's a bit of a process and things got held up for over a year . When he was finally ready to go the modular company went bankrupt . My brother did not get his money back and the house he lived in was gone . Another insult the government wanted there half they invested back from him but that never occured . All this helped to end his life prematurely . With anything requiring a sizable lead time and down payment there is such a big risk of possibly loosing your investment and like my brother crippling his ability to regroup from this big loss . Not sure if anything he could have done except maybe speeding up the process on his side .

Thanks for this. I was waiting to see what the differences were for quite a while

I've learned so much from your informative videos and all of the information is easy to understand BTW you're very entertaining as well thank you.

I own a modular home it is a crest home i bought it in 1997. To go on my land it came in two pieces and the roof was down it was put on a basement in Vermont. I had to pay extra points for a building loan and my first appraiser did it against doublewides even though it was a modular after that I refinanced it was a regular loan with with loan interest rates. I also has regular homeowners insurance. My friend has a doublewide and she has had horrible time getting insurance since Vermont added flood insurance to the homeowner insurance because we had floods and so many trailer parks flooded.

Thank you very much for the heads up! Most people don't do the research when it comes to modular are manufactured homes.Nice to find someone not afraid to tell the plain truth.

Very entertaining and great information. Thanks.

This is the best, most informative video I've seen on this topic. Thank you so much!! First time subscriber, life time fan 🙏

This was a great lesson. Well done! However, a copyright on a website means the written material on the site is protected. Usually, companies will say copyright 2000-2003, which might give you the idea that they've been in business 3 years, but unless they tell you, the best thing to do is call them up and ask them. Another thing to think about for people purchasing a used modular/manufactured home is a lot of companies are selling them but not the land underneath. In the case of a modular home, you can't move it, and most modular are placed for life, so you are stuck paying space rentals for life and have no choice if the owners want to raise it whenever they want. You are a captive audience. Know that going in the door.

I noticed USAA calls them Modular’s,manufactured… All at once, but they do insure them.

Got a single wide modular home on a small lot, its gone up $50,000 in 5 yrs, its cozy, comfortable, cheap to heat, easy quick to clean, we like it, its paid for.

Thanks for all your informative vide! You're helping out a lot of people. ❤

Fantastic information! I’ve been thinking about ADU’s, Modular homers etc and it’s a lot of confusing information out there. Appreciate the clarity.

Love your channel! So informative and fun! ❤❤❤❤

Another great video! Is there some kind of registry of companies that build these types of houses?

Your videos have been very helpful for us as we hunt for land and what type of dwelling place we plan to build on it....and you are so entertaining! 😄❤

Love this video!!! Thank you for the info and for allowing humor to mingle with the facts! I really laughed out loud :)

Great advice! Thanks for the information. 👍🏾

Thanks for sharing this information; truly eye-opening!

Thanks, Kristina, for clearing up the confusion around these homes.

You always have great content !! Very informative. Thanks!!!

Thank you very much for makng these videos. We have lived in an apartment for many years and we want to get a house some day, but be very wise and cautious so we know what we are getting into ahead of time and can plan accordingly.

You are always so much fun to watch! Very informative, but the humor is tops! 😉😁

Thank you so much! Although I had no interest in either style of home, and just went with the recommendation, this was a wealth of information.

I am a retired mortgage underwriter and the easiest way to tell the difference between a modular and manufactured is how it is delivered. Manufactured home comes with an attached tongue and wheels to the undercarriage, which is pulled into place on property. Don't be fooled by a double or triple wide as they come in two or more sections. This is not the definition of a true modular home. And they are now being made 2 story. Which is scary beyond anything I have heard of with MTG homes. These homes are not built like regualar homes. They use cheap products and get away with it. Modular homes are trucked in strapped down to a flatbed trailer. They have to use a crane to put them on the fondation. And the roof has to be put on once the home reachs it destination. This is a true modular home. Ask if the home has a tongue, undercarriage and wheels attached to the home. That will tell you all you need to know. And ALWAYS get an inspection & home warrenty before you sign off on it. To make sure all has been done correctly and you are covered for your first year for appliances, A/C furance. Blessings to all!

Hi Kristin. Great Info! I have been a mobile home installer for several years and have found that there is a lot of little pieces if info, and certain procedures that help mobile home owners refinance. Sometimes, just tie-downs underneath, other times a retro fit concrete skirting. Also, some insurance companies and banks are easier to work with than others. 👍

Not sure how I found this video, but I learned information I didn't even know I might need. Thanks!

Such great information. Company's like Deer Valley, Franklin Homes, and others in that line are all hybrid types of Modular? Then there is on frame, off frame modular type of homes too. Also, there is what's called a cross mod. Where the base of your home is manufactured, then a built attached garage, carport, a built front porch, using some type of stone for the under pinning is what makes a cross mod. Also if you put some sort of addition to the home as well. As always thanks for the great information 👍

Thank you for posting such an informative video. I have a vacant lot that I wish to put a modular home on and being a newbe I wasn’t sure what to ask. I subscribed to get more information from you. Thanks again.

As always, excellent information. Great presentation. 🥰

Great video !!!!! Thank you someone telling us what they don't

There are real estate "professionals" on RU-vid that often interchange the words "modular" and "manufactured" in their titles and descriptions. One question resolves this: Is there a HUD stamp? New MH Advantage homes are manufactured with HUD stamps, but can use site built homes for comparable home prices and can also get the same loans as stick built homes. Aside from the efficiency and economic advantages of manufactured homes, another advantage is that federal law (HUD) trumps any local or state building requirements. This pertains to the home itself, not setbacks, sewage, water, etc. MH Homes look more like regular homes than "mobile" homes and some are built with Energy Star certification.

You are really helping people thank you Kristina!

Clayton Homes in New Braunfels Texas is trying to sell those homes. They are not true modular homes, their modular homes are pulled in on wheels.

There is only one company in the US that insures manufactured homes. Foremost.

You help a lot of people. Thank you.

I saw a modular home online for $299,000, which I think is pricey, considering that one would have to purchase a lot to put it on.

Great lady Hats off to you.Thank you for Truth

i'm a general building contractor, electrical contractor, plumbing & mechanical, HVACR contractor, so i love looking at all the new building technologies so i can have different opyions out there to oofer my cliets etc

Great information. Thank you.

Great info! Thank you

GREAT info, Thanks!!!

👏. . K S , Thanks for ' shed-ding ' some light on the obstacles involved in this tricky - approach to pre-constructed homes .👍

I bought a manufactured home in 2019 before covid on 2.5 acres of land. Got everything included. It looks like a house on the inside. Its 1900 sq foot. Paid 230k out the door for the manufactured, 400 sqfoot carport. 2 shipping containers and a 2 acre fence. Its on a permanent foundation and is considered a hpuse, not manufactured. 5 years later its worth 450k. The day i got insurance i had to get 320k in insurance.