A modular home is one that is built indoors in a factory-like setting. The finished products are covered and transported to their new locations, where they are assembled by a builder. A modular home is not a mobile home; it is simply a home that is built off-site, as opposed to on-site. These homes are often called factory-built, system-built or prefab (short for prefabricated) homes. Modular and manufactured homes are not the same. Manufactured homes are not placed on permanent foundations.