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Factory Built Homes Defined

The term "Factory Built Home" applies to many different types of homes constructed off site in a factory.

All of these structures are built in the factory and designed for long-term residential use. It may surprise you to learn that almost all homes built today are comprised of some type of "factory-built" component. The differences in the types of factory-built housing are summarized as follows:

Modular Homes: These homes are built in a factory as modules that meet the state or local building code where the home will be located. Modules are transported to the site, installed on foundations, and completed. A modular home is comprised of two or more modules. For more information about modular homes, click here.

Panelized Homes: These are homes in which panels - a whole wall with windows, doors, wiring and outside siding - are transported to the site and assembled. The homes must meet state or local building codes where they are sited.

Pre-Cut Homes: This is the name for homes in which building materials are factory-cut to design specifications, transported to the site and assembled. Pre-cut homes include kit, log and dome homes. These homes must meet local, state or regional building codes.

Manufactured Homes:These are homes built entirely in the factory under a federal building code administered by the U.S. Department of Housing and Urban Development (HUD). Manufactured homes may be single- or multi-section and are transported to the site and installed.

When the Manufactured Housing Standards Act was passed by Congress in 1976, the designation "Mobile Home" was given to factory built homes manufactured prior to the act. Since the act substantially improved standards for building homes in a factory, Congress determined that the name, "Manufactured Housing (Home)" would be used to designate factory built homes manufactured under the new law (since 1976). With the passage and implementation of the act in 1976, "Mobile Homes" were no longer built. The United States Department of Housing and Urban Development was given authority over the construction and installation of Manufactured Homes by the new law mentioned above. HUD enacted the "HUD Code" to implement its authority. Manufactured Homes are also referred to as "HUD" homes. For more information about HUD Code Manufactured Homes, click here.

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