Comparing Double Wides To Single Wides For FHA Appraisal

[Deleted member 128537]

https://www.FHA.com/fha_article?id=209

The only manufactured homes that may be classified as real estate or "real property" are those which have a permanent foundation built to FHA standards. They must be considered a "permanent dwelling" or the home is considered personal property for tax purposes and is ineligible for an 30-year FHA mortgage. According to FHA requirements, "the mortgage must cover both the manufactured unit and its site and shall have a term of not more than 30 years from the date amortization begins."

The point I am trying to make is regarding real property appraisal; not personal property appraisal. That is what is being asked by the original poster. A real property appraisal is what is ordered. Otherwise mobile homes are valued using a blue book (NADA) method like vehicles.

 

[CANative]

I'm sorry you're having such a difficult time with this. I'll leave you alone.

 

[Mr Rex]

https://www.FHA.com/fha_article?id=209

The only manufactured homes that may be classified as real estate or "real property" are those which have a permanent foundation built to FHA standards. They must be considered a "permanent dwelling" or the home is considered personal property for tax purposes and is ineligible for an 30-year FHA mortgage. According to FHA requirements, "the mortgage must cover both the manufactured unit and its site and shall have a term of not more than 30 years from the date amortization begins."

The point I am trying to make is regarding real property appraisal; not personal property appraisal. That is what is being asked by the original poster. A real property appraisal is what is ordered. Otherwise mobile homes are valued using a blue book (NADA) method like vehicles.

The other lenders do not require a foundation to FHA standards, but do require "permanent foundations".

 

[J Grant]

How can one tell from an inspection if the foundation meets FHA standards?

 

[Mr Rex]

You can't. That's why every FHA manufactured appraisal is subject to an Engineers certification that the foundation meets HUD/FHA's permanent foundation requirements.

 

[J Grant]

Thanks for the reply. With FHA, is it typical for the engineers foundation certification to be sent by lender with the order, or does appraiser report make it subject to getting it?

I am asking because I don't get many manufactured home assignments , I did get one yesterday and turned it down because it was FHA and the photos the construction looked crappy (mobile home, not manufactured ) house raised up but on a permanent foundation .. I did a quick sales search of the community and all thirty of the last year out sales were cash, none of them financed and none of them FHA financed, which led me to believe it might not qualify...

 

[Mr Rex]

It depends on the lender. A lot of times they wait until they get the numbers back on the appraisal before they have the borrower spend the money for the engineer. Around here the engineers charge +/-$350 for the certification and the "upgrade" to FHA requirements if not already done runs from $750-1500 typically depending on the size of the house.

 

[J Grant]

Thanks. If lender does not provide the engineer cert report would be subject to...

This assignment made me nervous - a good client and good fee so hated to turn it down, but it "smelled" hinky - a flip sale of a 1050 sf mobile smaller than most others in community at a high price CS, beautifully renovated inside but outside still a POS (sorry, it was, metal mobile home not a wood frame manufactured) raised up on a foundation but with none of the other homes having financing , all bought for cash, I did not want to get involved with FHA requirements...don't do enough of these to feel comfortable with it.

 

[andrew81]

Thanks for the reply. With FHA, is it typical for the engineers foundation certification to be sent by lender with the order, or does appraiser report make it subject to getting it?

I am asking because I don't get many manufactured home assignments , I did get one yesterday and turned it down because it was FHA and the photos the construction looked crappy (mobile home, not manufactured ) house raised up but on a permanent foundation .. I did a quick sales search of the community and all thirty of the last year out sales were cash, none of them financed and none of them FHA financed, which led me to believe it might not qualify...

new construction must meet foundation requirements, not existing

5. Property Acceptability Criteria for Manufactured Housing for Title II Insured Mortgages

c. Foundation Systems

i. New Construction for Manufactured Housing

(A)Definition
New Construction for Manufactured Housing refers to a Manufactured Home that has been permanently erected on a site for less than one year prior to the case number assignment date.

(B) Standard

The space beneath the house must be enclosed by a continuous foundation type construction designed to resist all forces to which it is subject without transmitting forces to the building superstructure. The enclosure must be adequately secured to the perimeter of the house and be constructed of materials that conform, accordingly, to HUD MPS (such as concrete, masonry or treated wood) and the PFGMH for foundations.

(C)Required Analysis and Reporting

If the Manufactured Home foundation does not meet the requirements for New Construction, the Appraiser must notify the Mortgagee and report the deficiency of the MPR or MPS.

ii. Existing Construction for Manufactured Housing

(A)Definition

Existing Construction for Manufactured Housing refers to a Manufactured Home that has been permanently installed on a site for one year or more prior to the case number assignment date.

(B)Standard

If the perimeter enclosure is non-load-bearing skirting comprised of lightweight material, the entire surface area of the skirting must be permanently attached to backing made of concrete, masonry, treated wood or a product with similar strength and durability.

Skirting

Skirting refers to a non-structural enclosure of a foundation crawl space. Typically, but not always, it is a lightweight material such as vinyl or metal attached to the side of the Structure, extending to the ground (generally, not installed below frost depth).

If the Manufactured Home foundation does not meet the requirements for Existing Construction, the Appraiser must notify the Mortgagee and report the deficiency in the MPR or MPS.

 

[CANative]

FHA MH appraisal's are always condition on the existing foundation meeting the requirements in PFGMH. If you don't have a foundation plan with a wet signature from the certified engineer, you've got nothing. That's why this is so easy. Protocol.