Prefabricated Home Loans

Factory Built Housing
The term "factory built housing" refers to prefabricated homes, modular homes, and manufactured homes. These are homes that are built in whole or in part in a factory. Any home that does not meet the definitions of factory built housing will be considered site-built.

The following are types of factory built housing:

Prefabricated Home
A prefabricated home is completely assembled at the factory and is moved to the site either in its entirety or in sections. A prefabricated home may be similar in appearance to a manufactured home, but is designed to be attached to a permanent foundation.
Modular Home
A modular home is built from factory assembled components. Typically, the home is constructed off-site in sections (pre-built walls, roof, and floor components). The sections are moved to the building site for assembly and are attached to a permanent foundation. The comparable sales should be similar in appeal and utility to the subject property.

There are two classifications of modular:
- An "on-frame" modular home is built on the same permanent metal chassis used in the construction of the manufactured home. The home is built to state code used by modular manufacturers and site builders. Like the manufactured home, the steel frame or chassis is an integral part of the structure that provides support and remains a part of the unit after it is erected o the site. Set-up and transportation of the on-frame unit is similar to the manufactured home in that it is towed to the site on axles and wheels that are removed when the unit is set.
- An "off-frame" modular home is a structure designed without a permanent metal chassis built to state or national building codes and manufactured in one or more sections in a factory for installation on a permanent foundation. Occasionally components are constructed with a metal frame for transportation, but it must be removed when the dwelling is assembled. The components are typically moved with a flat bed truck to the site and assembled with a crane.

Factory Built Housing Requirements
All factory built housing must meet the following requirements:

The improvements are a one-unit dwelling.
Assume the characteristics of site-built housing
Meet local zoning and building codes
Be permanently affixed to a foundation

Factory Built Housing Appraisal Criteria (for other than manufactured homes)
The appraiser must establish that the subject property is marketable and compatible with the neighborhood by using similar factory built housing units. If comparable sales of similar units are not available, the appraiser may be required to use site-built housing. The appraiser must indicate whether the property is "on-frame" or "off-frame" construction.

When factory built units are not available as comparable sales or there is a preference for site-built housing, the appraiser must adjust the site-built comparables to reflect the market’s reaction to factory-built housing units.