Thinking about building a new home, but not sure what “modular” really means? You are not alone.

Many buyers hear “modular” from a friend, see “prefab” on a website, or read about “panelized kits”, and wonder if they are all the same. The answer? They are not. Each option is built, delivered, and managed on site in a different way.

Don’t worry, this article will explain the differences between these terms: modular, manufactured, mobile, panelized, and prefab.

If you are also leaning toward a modular home, this will help you understand it before you pay. It will also help you compare other options, such as a panelized home, so you can pick what is best for you.

What is a modular home?

A modular home is built inside a factory in large sections called modules. The modules are delivered to your lot on trucks. A crane sets the modules on a permanent foundation. After that, crews connect plumbing, electrical, HVAC(heating and cooling), and finish the siding and interior. Modular homes follow the same local building codes as regular site-built homes, so lenders and appraisers usually treat them like any standard house.

How a modular home is built and installed

Here is the basic flow.

1. You choose a plan and options while your contractor prepares the foundation on your lot.
2. The factory builds the modules indoors.
3. When the modules arrive, a crane sets them in place.
4. Crews connect everything and complete the finishes.
5. Building indoors helps avoid weather delays and can shorten the schedule compared to building everything outside.

Manufactured, mobile, modular, panelized and prefab

A manufactured home, also called a mobile home, is built on a steel frame called a chassis and follows a federal code known as HUD. It arrives mostly complete and can be placed in a park or on private land. Rules for financing, zoning, and resale can be different from a regular house.

A modular home is also built in a factory, but it sits on a permanent concrete foundation and must meet local building codes. Think of it as a regular house that is built in big pieces indoors and then joined together on your lot.

A panelized home is built as flat parts in a factory rather than as full room-sized boxes. The manufacturer fabricates labeled wall sections, floor systems, and roof parts that are delivered to your site and assembled by a builder.

Prefab is short for pre-fabricated. It simply means parts of the home are built in a factory. Prefab describes how it is built; it is not the exact product. Modular and panelized homes are both types of prefab.

 

For a detailed comparison, read Prefabricated and Mobile Homes: There Is a Difference!

Modular vs Panelized Homes: Which Fits Your Project?

 

Prefab Type	PROS	CONS
Modular	Quick to set once the foundation is ready Built indoors, fewer weather delays Treated like a standard house for codes and loans	Hard to change after you order Needs crane and set crew Delivery can be tough on tight or steep roads
Panelized	Flexible design and easier plan tweaks Flat parts are easier to deliver to most sites Fast, accurate on-site framing Can save up to 25% of construction cost	More on-site coordination Timeline depends on local crews Owner or a general contractor is usually needed

 

Advice: Choose a modular home if you want a fast set, have easy crane access, and are okay with fewer changes after ordering. If you want more control over layout and finishes, easier delivery to most sites, and more say in total cost, choose a panelized home. If you want to know how much a modular home or a panelized home costs, you should compare the entire build (permits, utilities, foundation, delivery, set day, trades, and finishes). Always compare the whole project, not just the house package.

To understand more about panelized building kits, you can check this overview. 

 

Next Steps: What PMHI Offers

If modular sounds right for you, talk with a local builder about site access, crane logistics, and schedule. But if panelized feels like a better fit, you can work with us at PMHI. We offer different floorplans and panelized home kits that can match your lot and lifestyle.