Factory-Built Home

Definition

A Factory-Built Home refers to residences primarily constructed in a factory setting and then transported to the building site. This category includes various types of homes such as Manufactured Homes, Modular Homes, and Prefabricated Homes. Unlike traditional Site-Built Homes, these homes are typically assembled under controlled manufacturing conditions, which allows for lower costs and improved build quality.

Types of Factory-Built Homes

Manufactured Homes: These are built entirely in a factory and are placed on a permanent chassis. They must conform to a federal code set by the U.S. Department of Housing and Urban Development (HUD).
Modular Homes: These are constructed in sections or modules at a factory and then transported to their destination site, where they are assembled. Unlike manufactured homes, modular homes must conform to all local, state, and regional building codes.
Prefabricated Homes: This broader term often includes modular homes and generally refers to homes that have been pre-assembled or partially assembled and then transported to the final location.

Examples

Cost Savings: Factory-built homes are generally cheaper to produce due to reduced labor costs and bulk material purchasing. For example, a 2,000-square-foot manufactured home might cost significantly less than a similarly sized site-built home.
Construction Time: Because these homes are built in factory settings, construction can often proceed more quickly and without the delays caused by weather conditions typical of site-built homes.
Quality Control: Factory environments enable strict adherence to quality control measures, ensuring a consistent building process.

Frequently Asked Questions (FAQs)

Q1. Are factory-built homes of lower quality than site-built homes? No, factory-built homes adhere to stringent building codes and often meet or exceed the quality of site-built homes because they are constructed in controlled environments.

Q2. Can I get a mortgage for a factory-built home? Yes, mortgages are available for factory-built homes, although the financing options may differ for manufactured homes compared to modular or prefabricated homes.

Q3. Can factory-built homes appreciate in value? Yes, like site-built homes, factory-built homes can appreciate in value, particularly if they are well-maintained and located in desirable areas.

Q4. Do factory-built homes look different from traditional homes? Not necessarily. Many factory-built homes are designed to blend seamlessly with the architectural styles common in site-built homes.

Manufactured Home: A type of factory-built housing that is transported to a site on its own chassis and must comply with HUD building codes.
Modular Home: Sections of the home are constructed in a factory and then assembled on-site. These homes must conform to local, state, and regional building codes.
Prefabricated Home: A general term for homes that have been partially or fully assembled in a factory and then completed on-site.

Online Resources

References

U.S. Department of Housing and Urban Development. (n.d.). Manufactured Housing. Retrieved from https://www.hud.gov/program_offices/housing/rmra/mhs/mhshome
Modular Building Institute. (n.d.). What is a Modular Home? Retrieved from https://modular.org/

Suggested Books for Further Studies

“Prefabulous: The House of Your Dreams Delivered Fresh from the Factory” by Sheri Koones.
“The Modular Home” by Andrew Gianino.
“Prefabrication and Design for Manufacture and Assembly” by Andrea Deplazes.

Real Estate Basics: Factory-Built Home Fundamentals Quiz

### What specific code do manufactured homes need to comply with in the United States? - [x] HUD Code - [ ] State Building Code - [ ] International Building Code (IBC) - [ ] Residential Code > **Explanation:** Manufactured homes must comply with the HUD Code set by the U.S. Department of Housing and Urban Development, ensuring construction standards are met. ### Which term refers to homes that are entirely built in a factory and placed on a chassis? - [x] Manufactured Homes - [ ] Modular Homes - [ ] Site-Built Homes - [ ] Prefabricated Homes > **Explanation:** Manufactured Homes are entirely built in a factory and transported to the home site on a permanent chassis. ### What is a key benefit of constructing homes in a factory setting? - [ ] Increased labor costs - [x] Reduced labor costs - [ ] Limited quality control - [ ] Longer construction timeline > **Explanation:** Constructing homes in a factory setting allows for significant cost savings, primarily due to reduced labor costs and efficient use of materials. ### Modular homes must adhere to which building codes? - [x] Local, State, and Regional Building Codes - [ ] HUD Code - [ ] Mobile Home Standards - [ ] ANSI Standards > **Explanation:** Modular homes must comply with local, state, and regional building codes, similar to traditional site-built homes. ### What is typically NOT a feature of factory-built homes? - [ ] Faster construction time - [ ] Reduced construction costs - [x] Higher susceptibility to weather delays - [ ] Enhanced quality control > **Explanation:** Factory-built homes are normally less susceptible to weather delays because they are assembled in controlled indoor environments, allowing for faster and more consistent construction. ### Can factory-built homes appreciate in value? - [x] Yes, they can appreciate in value. - [ ] No, they depreciate automatically. - [ ] Only in specific markets. - [ ] Only if they are luxury models. > **Explanation:** Like traditional homes, factory-built homes can appreciate in value, especially when well-maintained and located in desirable areas. ### Who oversees the regulation and standards for Manufactured Homes in the U.S.? - [ ] Local Health Departments - [ ] State Contractors Board - [ ] American National Standards Institute (ANSI) - [x] U.S. Department of Housing and Urban Development (HUD) > **Explanation:** The U.S. Department of Housing and Urban Development (HUD) oversees the regulation and standards for Manufactured Homes. ### What commonly distinguishes modular homes from other factory-built homes? - [x] Modules assembled on-site - [ ] Permanent chassis - [ ] HUD compliance - [ ] Fully mobile > **Explanation:** Modular homes consist of sections or modules assembled at the factory and transported to and assembled at the final building site. ### What does the term 'prefabricated home' most accurately encompass? - [x] Homes pre-assembled in a factory - [ ] Only manufactured homes - [ ] Only modular homes - [ ] Mobile homes only > **Explanation:** 'Prefabricated home' is an umbrella term that generally refers to any homes that have been pre-assembled in a factory, including both manufactured and modular homes. ### Financially, why might consumers choose a factory-built home over a site-built home? - [ ] Limited financing options - [ ] Higher taxing requirements - [ ] Longer construction periods - [x] Potential cost savings > **Explanation:** Consumers might choose factory-built homes because of the potential cost savings derived from reduced labor costs and efficient material use in a factory setting.