1004c And FHA

[Barbara Robinson]

Can anyone tell me if FHA required the 1004C with appraisals of manufactured homes?

 

[Farm Gal]

Don't think it matters what FHA needs, unless you are doing a REO (in which case call your HOC)

1004c is (as I understand it is REQUIRED for all Fannie loan aps taken on manufactured homes after August 24, and ALL Fannie loans closing after October 1 need the new form.

Point being unless it is a REO, I think you are pretty well tied to the 1004C~

 

[Jo Ann Meyer Stratton]

The 1004C is for loans to be purchased by Fannie Mae and it is not applicable for FHA appraisals. The new five page VC sheet and new Home Buyers Summary would be applicable for manufactured homes. Page 4 of the VC sheet needs to be filled out and then additional information provided on page 5. On page 4 at VC-14 A you would fill in the number you find on the red tag (HUD label) on the exterior. If the HUD labels/tags are missing then the lender or the homeowner can contact HUD to verify that the home was constructed to the HUD building code. If there are modifications or additions to the home you would enter the serial number your state has assigned those additions/modifications (if your state does inspections of additions/modifications). If your state doesn't do inspections describe on page 5 whatever your local governing agency does do (if anything). Unless the home owner or lender can provide you with a copy of the engineers on site inspection of the foundation, that would be a condition on page 5. All manufactured homes are required to have an licensed engineer do an on site inspection of the foundation to verify that it is in compliance with the Permanent Foundations Guide for Manufactured Homes. The design by the manufacturer's engineer is not sufficient, an on site inspection of the foundation as built has to be completed by a licensed engineer. And the appraiser needs to research to see if the home is being taxed as real estate or make a condition that the title be purged or surrendered so that it is no longer personal property.

Policy regarding missing HUD labels/tags:

http://www.HUD.gov/offices/hsg/sfh/mhs/mhslabels.cfm

 

[Farm Gal]

Ummm Jo Ann:

I may be missing the important issue on this, but when a loan is made through a Fannie Lender, don't they usually REQUIRE compliance with Fannie regs, even if the loan is to be FHA insured?

If for no other reason than because they are used to the rules?

Many of my clients have a "cleint requirement" that you fully comply with Fannie regulations,,, which at least as I understand it means that you have to use the 1004C (?).

And doesn't a Fannie lender box up the loan for secondary market even if it is FHA insured, or am I missing something there also... I had two friends who never knew where their next mortgage check was going to need to be sent... and they both had 'FHA insured' loans through Fannie lenders... maybe that was just mergers...

 

[Jo Ann Meyer Stratton]

There are some lenders that arrange FHA financing and also arrange for mortgages that will be sold to Fannie Mae, and they might also arrange for a loan that will be sold to a private investor or a small bank, etc, etc. Just because they are capable of arranging any type of mortgage situation from the borrower, it doesn't mean that all guidelines for all clients would apply in a single transaction. If it is to be an insured FHA loan, then all the guidelines in 4150.2, FAQs, National HOC Reference Guide and now the policy regarding missing tags would apply. Completely separate and two different situations. So if it is an FHA loan then all HUD requirements apply. It it is a Fannie Mae type loan, then all Fannie Mae guidelines apply. Same for if it was a VA loan or a loan that would be sold to Freddie Mac. Each type of lender has their own little box to fit in--and trying to combine all guidelines in one package just doesn't work or apply. The 1004C is for loans to be sold to Fannie Mae only--although private investors or portfolio lenders might want a check list (grrrrr), and if they do then I will provide the 1004C, but it is not automatically required like Fannie Mae.

FHA loan == HUD requirements only apply

Fannie Mae loan == Fannie Mae guidelines only apply, the 1004C is for loans that Fannie Mae will purchase, where they are going to be chancing their money

Other types of loans == whatever the client guidelines say (as long as it is honest and ethical).