On-Frame Modular Homes: A Sustainable and Energy-Efficient Housing Solution
Modular homes have gained popularity in recent years as a cost-effective and sustainable housing option. But what exactly are on-frame modular homes, and how do they differ from other types of factory-built homes? In this article, we explore the features, financing options, and advantages of on-frame modular homes, along with key differences between on-frame and off-frame modular homes, so you can make an informed decision when considering this innovative housing solution.
Key Takeaways:
- On-frame modular homes are factory-built homes that have a steel frame underneath the structure, providing added structural support.
- Off-frame modular homes, on the other hand, do not have a steel frame and are built to the same residential codes as stick-built homes.
- Identifying a modular home versus a manufactured home can be done by looking for a permanent modular home seal or HUD numbers on the data plate.
- Financing options for on-frame and off-frame modular homes vary, with special loan products often required for on-frame homes.
- Modular homes offer advantages such as controlled construction environment, shorter construction time, and lower costs compared to site-built homes.
What are On-Frame Modular Homes?
On-frame modular homes, sometimes referred to as on-frame homes, feature a steel frame underneath their structure. This steel frame provides durability and structural support to the home.
The floor joists in on-frame modular homes are typically made of 2″ x 6″ or 2″ x 8″ lumber. These floor joists are spaced up to 24″ apart, creating a sturdy and solid foundation for the home.
Due to the presence of a steel frame, on-frame modular homes may require special loan products to finance the purchase. This is because they are often appraised as manufactured homes rather than traditional site-built homes. It’s important for potential buyers to be aware of this when considering financing options.
To give you a visual representation, here’s an image of an on-frame modular home:
As you can see, the steel frame is a crucial component of these homes, providing stability and strength.
If you’re considering purchasing an on-frame modular home, it’s important to understand the unique characteristics they offer, including their steel frame construction and the potential need for special loan products. Next, let’s explore off-frame modular homes, which have a different construction approach.
What are Off-Frame Modular Homes?
Off-frame modular homes, on the other hand, do not have a steel frame underneath. The floor joists in these homes are typically 2″ x 10″ and are spaced 16″ apart. Off-frame modular homes are built to the same residential codes as stick-built homes and can be appraised similarly. They offer the same lifespan and equity potential as stick-built homes.
How to Identify a Modular Home vs a Manufactured Home
To distinguish between a modular home and a manufactured home, there are a few key identifiers to look out for. One of the first things to check is the presence of a permanent modular home seal. This seal is usually located on the data plate, which can be found under the kitchen sink or inside the main electrical panel of the home.
The data plate not only displays the permanent modular home seal, but it may also contain information about the HVAC system of the property. This seal serves as confirmation that the home is a modular home, built in sections off-site and assembled on-site.
On the other hand, manufactured homes can be identified by the data plate tag with HUD numbers located on the exterior of the home. These HUD numbers indicate that the home is a manufactured home, constructed entirely in a factory and transported to its final location.
It’s important to note that modular homes are typically taxed as real property, similar to traditional houses, while manufactured homes are often classified and taxed as personal property.
Understanding the differences between modular homes and manufactured homes can help you make informed decisions when it comes to buying or investing in a property. Now that you know what to look for, you can confidently identify the type of home you’re dealing with.
Financing Options for On-Frame and Off-Frame Modular Homes
When it comes to financing on-frame and off-frame modular homes, there are a variety of options available. The specific financing options for each type of modular home can vary, so it’s essential to understand the different approaches lenders may take.
On-frame modular homes, which feature a steel frame underneath, may be treated as manufactured homes by some lenders. This classification can impact the loan products available for financing. In such cases, borrowers may need to consider specialized loan options designed for manufactured homes. These options can include FHA loans, VA loans, USDA loans, and conventional loans tailored to manufactured home financing.
Off-frame modular homes, on the other hand, are built without a steel frame. These homes often qualify for financing options similar to stick-built homes. Borrowers may have a wider range of loan options to choose from, including FHA loans, VA loans, USDA loans, and conventional loans that meet the requirements for conventional stick-built home financing.
Popular Financing Options for Modular Homes
- FHA Loans: Federal Housing Administration (FHA) loans are a popular choice for financing on-frame and off-frame modular homes. These loans are backed by the government and offer competitive interest rates and flexible credit requirements.
- VA Loans: The Department of Veterans Affairs (VA) offers VA loans exclusively to eligible veterans and active-duty military personnel. VA loans can be used to finance both on-frame and off-frame modular homes, providing favorable terms and benefits to qualified borrowers.
- USDA Loans: The United States Department of Agriculture (USDA) provides USDA loans to borrowers in rural areas. These loans offer attractive financing options for both on-frame and off-frame modular homes, helping individuals and families achieve homeownership in eligible rural locations.
- Conventional Loans: Conventional loans, offered by private lenders and not backed by the government, can also be used to finance on-frame and off-frame modular homes. These loans often require a higher credit score and larger down payment, but they provide flexibility in terms of loan amount and repayment options.
When considering financing options for modular homes, it’s crucial to work with lenders familiar with the intricacies of modular home financing. Lenders experienced in modular home loans can guide borrowers through the process and help them choose the right financing option to suit their specific needs and circumstances.
Advantages of Modular Homes
Modular homes offer several advantages over traditional site-built homes. These advantages make them an attractive option for individuals looking for affordable and efficient housing solutions.
Controlled Environment
One of the key advantages of modular homes is that they are built in a controlled environment. Unlike on-site construction, where homes are exposed to unpredictable weather conditions, modular homes are constructed in a climate-controlled factory. This controlled environment minimizes the risk of weather-related damage and ensures that the construction process is not delayed or compromised due to adverse weather conditions.
Shorter Construction Time
Thanks to their factory-built construction process, modular homes can be completed in a shorter time frame compared to traditional site-built homes. Since the modules are pre-fabricated in the factory, there is no need for time-consuming on-site construction activities. This streamlined process allows for faster installation and assembly of the modules on the building site, reducing the overall construction time.
Lower Cost
Modular homes are often more affordable than homes built on-site, mainly due to the controlled environment in which they are manufactured. The use of standardization and efficient production techniques in the factory setting helps to minimize costs. Additionally, there are fewer delays and uncertainties associated with on-site construction, resulting in cost savings that are passed on to the homebuyers.
Overall, modular homes offer the advantages of a controlled environment, shorter construction time, and lower costs. These factors make them an appealing option for those seeking efficient and budget-friendly housing solutions.
Conclusion
When it comes to sustainable and energy-efficient housing, both on-frame and off-frame modular homes offer viable options for homebuyers. By understanding the differences between these two types of modular homes, individuals can make informed decisions that align with their needs and preferences.
On-frame modular homes, with their steel frames, provide a sturdy foundation for the structure. However, they may require special loan products and are often appraised as manufactured homes. On the other hand, off-frame modular homes do not have a steel frame but are built to the same codes as stick-built homes, allowing them to be appraised similarly.
Both on-frame and off-frame modular homes benefit from the advantages of modular construction, such as shorter construction times and controlled environments. These factors contribute to lower prices and reduced risks of weather-related damage. With financing options available, modular homes are gaining popularity in the housing market, providing sustainable and energy-efficient housing solutions for a variety of homebuyers.
FAQ
What are on-frame modular homes?
On-frame modular homes have a steel frame underneath the structure. The floor joists in these homes are typically 2″ x 6″ or 2″ x 8″ and are spaced up to 24″ apart. Due to the presence of a steel frame, on-frame modular homes may require special loan products to finance the purchase. They are often appraised as manufactured homes, which can affect their value over time.
What are off-frame modular homes?
Off-frame modular homes do not have a steel frame underneath. The floor joists in these homes are typically 2″ x 10″ and are spaced 16″ apart. Off-frame modular homes are built to the same residential codes as stick-built homes and can be appraised similarly. They offer the same lifespan and equity potential as stick-built homes.
How can I identify a modular home vs a manufactured home?
To identify a modular home, look for a permanent modular home seal, which is usually located on the data plate under the kitchen sink or inside the main electrical panel. The data plate may also contain information about the HVAC system. On the other hand, manufactured homes have a data plate tag with HUD numbers on the outside. It’s important to note that modular homes are taxed as real property, while manufactured homes are often taxed as personal property.
What financing options are available for on-frame and off-frame modular homes?
Financing options for on-frame and off-frame modular homes vary. On-frame modular homes may be treated like manufactured homes by some lenders, while off-frame modular homes can be financed similarly to stick-built homes. FHA, VA, USDA, and conventional loans are available for both types of modular homes, depending on the lender and the specific requirements of each loan program.
What are the advantages of modular homes?
Modular homes offer several advantages over traditional site-built homes. They are built in a controlled environment, which reduces the risk of weather-related damage and allows for faster construction timelines. Modular homes also tend to be more affordable compared to homes built on-site, as there are fewer delays and uncertainties due to the controlled environment.
What is the difference between on-frame and off-frame modular homes?
The main difference between on-frame and off-frame modular homes is the presence of a steel frame underneath. On-frame modular homes have a steel frame, while off-frame modular homes do not. On-frame modular homes are often appraised as manufactured homes and may require special loan products for purchase. Off-frame modular homes, on the other hand, can be appraised similarly to stick-built homes and do not require special financing options.
