Prefab vs Modular Homes: What’s the Difference?

Buyers often use “prefab” and “modular” interchangeably. In practice, prefab is the umbrella: any home largely built off-site. Modular usually means sections built to local building codes, transported, and assembled on a permanent foundation — closer to stick-built in financing and appraisal treatment in many markets.

Manufactured homes are built to the HUD Code and often sit on a chassis. Panelized and kit homes ship as wall panels or packages for more on-site assembly. ADUs and tiny homes may use any of these methods.

When you shortlist builders on Prefably, filter by the method that matches your lot, budget, and lender requirements — then verify code path and foundation details with the company before you sign.