Modular homes are prefab homes constructed under a local state code. In most cases, states have adopted the International Residential Code, or IRC. Modular homes differ from traditional HUD-code manufactured homes in that they’re built in sections, or modules. These modules are then transported to the building site and assembled. One major benefit of modular construction is that Southern United States modular homes are classified as permanent structures. This means they’re considered “real property”, and therefore qualify for the same financing terms, rates, and conditions as site-built homes. Plus, they offer immense customization options and a generally lower cost than their site-built counterparts.