Modular homes are factory built and similar to site-built homes, transported in sections, assembled on-site, and affixed to permanent foundations, according to the National Modular Housing Council. The U.S. Department of Housing and Urban Development states that manufactured homes, formerly "mobile homes," are manufactured in plants and affixed to rolling chassis.
Modular homes are built in an assembly factory with the same materials, and in the same manner, as conventionally built homes, notes the National Modular Housing Council. The versatility of the modular system allows modular homes to be built in numerous floor plans and story heights. Modular homes are subject to, and built under, the same local building codes that apply to site-built homes, and are considered the same as site-built homes for zoning and financing purposes. The NMHC is a collaborative organization concerned with advancing the interests of the modular home industry.
In contrast to modular homes, the HUD defines a manufactured home as being built on a permanent rolling chassis. Unlike modular homes that are subject to local building codes, HUD holds jurisdiction over manufactured home building standards, and it issues certifications to manufactured home owners for insurance purposes. Manufactured homes are often situated in mobile home parks, unlike modular homes, which are built anywhere that conventional homes are located.