CrossMod Homes: Bridging the Gap Between Manufactured and Site-Built Housing

 

What Exactly Is a CrossMod Home?

The term CrossMod was coined by the Manufactured Housing Institute (MHI) to describe a new breed of factory-built homes that combine the efficiency of HUD-code manufactured housing with the design features and financing eligibility of site-built homes. These homes feature permanent foundations, pitched roofs with eaves, drywall interiors, garages or porches, and upgraded energy packages—details that allow them to blend seamlessly into traditional neighborhoods. They remain manufactured homes under federal HUD code but are positioned to qualify for conventional appraisals and mortgages.

Where and Why Did They Originate?

CrossMods emerged in response to a persistent industry problem: financing and zoning hurdles for manufactured housing. While HUD-code homes have long been one of the most affordable pathways to ownership, many buyers struggled with restrictive zoning ordinances, appraisal challenges, and limited financing options.

In 2018, Fannie Mae launched MH Advantage®, and Freddie Mac followed with CHOICEHome®, both designed to extend conventional mortgage financing to HUD-code homes that met site-built-style criteria. MHI created the CrossMod brand to unite these efforts under a consumer-friendly name and to expand industry adoption.

Why Is There Pushback?

Not everyone in the housing industry is on board.

• Manufactured housing purists argue CrossMods divide the market—potentially privileging a subset of upgraded homes instead of advocating for equal treatment of all HUD-code homes under federal law.
• Cost skeptics question whether the added design requirements push prices beyond the affordability edge for the very buyers manufactured housing is meant to serve.
• Appraisal hurdles also linger: while Fannie and Freddie programs allow site-built comps, appraisers often remain cautious until more CrossMods populate neighborhoods, creating a chicken-and-egg problem.

Are They Inferior in Quality or Safety?

Quite the opposite. CrossMods are built to the same federal HUD safety and construction standards as other manufactured homes—covering durability, fire protection, and wind resistance. In fact, their enhanced site-built features raise perceived quality and, in some cases, long-term value. Studies show manufactured homes already appreciate at rates similar to site-built housing, and CrossMods are engineered to close the “stigma gap” even further.

Do They Qualify for Conventional Mortgages?

Yes—and that’s their biggest advantage.

• Fannie Mae’s MH Advantage® allows buyers to use site-built comps in appraisals when same-program comps are unavailable.
• Freddie Mac’s CHOICEHome®, recently expanded in 2025, offers parallel access to 30-year fixed-rate loans with down payments similar to traditional mortgages.

This financing flexibility can reduce barriers for buyers and increase lender confidence, something traditional manufactured housing often struggled with.

New York State’s CrossMod Pilot Program

In 2024, New York State launched the Land Bank Initiative CrossMod Pilot Program, administered through New York State Homes and Community Renewal (HCR). The initiative partners with local land banks to deploy CrossMod homes on vacant properties, particularly in neighborhoods scarred by blight and abandonment.

The goals are clear:

• Affordability: Leverage factory-built efficiency to cut construction costs.
• Speed: Deliver homes far faster than site-built construction timelines.
• Neighborhood Fit: Use site-built features so homes blend seamlessly into surrounding communities.
• Financing Access: Ensure the finished product qualifies for conventional mortgage financing and appraisals, avoiding the second-class treatment too often given to HUD-code homes.

If successful, this pilot could become a national template, showing how CrossMods can both revitalize neighborhoods and expand affordable housing stock without triggering community resistance.

What Does the Future Hold?

The future of CrossMods will depend on three key factors:

1.    Appraisal acceptance. As more CrossMods are sold, appraisers will gain confidence in valuing them alongside site-built homes.

2.    Zoning modernization. Programs like New York’s pilot may prove CrossMods can overcome NIMBY opposition by blending in aesthetically.

3.    Industry adoption. Manufacturers, lenders, and retailers must embrace CrossMods not as a niche experiment but as a mainstream product line.

The housing affordability crisis shows no signs of easing. CrossMods—while not a cure-all—offer a bridge solution that blends affordability, quality, and financing in ways that could redefine the manufactured housing landscape.