Overall manufactured homes tend to cost less than modular homes since the standards and quality of materials used are different. Manufactured homes are built in a factory from the ground up to qualify under HUD (Housing and Urban Development) guidelines, which brings down the cost of production. Modular homes are, instead, built in in specialized factory in sections (known as modules) before being assembled on-site according to local and state building codes. This translates in to higher upfront costs associated with modular homes. But, on the other hand, due to the excellent durability, customization, and energy efficiency, it can save a lot of money in the latter. Keep in mind that upfront costs are just one element — consider long-term value, too, as well as maintenance and energy efficiency, when making a decision. Both kinds of homes are at lower price points than conventional homes, but selecting the right one depends on your finances, where you want the home, and how you intend to use the home.