FHA and "on-frame" modular home

[mbroussard]

I have an assignment for an FHA appraisal of an "on-frame" modular home... (see full post below)

 

[mbroussard]

FHA and "on-frame" modular homes

I have an assignment for an FHA appraisal of an "on-frame" modular home. I know Fannie Mae will not buy loans of "on-frame" modular homes. However, I have read conflicting information on the Appraisers Forum regarding the FHA insuring such properties. Can anyone provide a definitive answer as to whether or not an "on-frame" modular home qualifies for an FHA insured loan and cite the source of your answer?

And, if FHA does insure loans for "on-frame" modular homes, which form should the report be written on? It seems using a Fannie Mae Form 1004 designed for reporting appraisals of one-unit (single-family) homes may be misleading since Fannie Mae itself does not consider "on-frame" modular homes to be such. Help!!! Thanks.

 

[Noreen]

Modular homes are constructed to the same state, local or regional building codes as site-built homes. Other types of systems-built homes include panelized wall systems, log homes, structural insulated panels, and insulating concrete forms.

[SIZE=-0]TENNESSEE
Mike Bartlett, FCS III
Deputy State Fire Marshal
Tennessee State Fire Marshal's Office
Tennessee Modular Building Program
500 James Robertson Parkway
Third Floor, Davy Crockett Tower
Nashville, TN 37243-1162
PH: (615) 741-7190
Voice Mail: (615) 532-5855
FAX: (615) 253-3267
Email: Mike.Bartlett@tn.gov [/SIZE]

MODULAR HOMES ARE NOT THE SAME AS MANUFACTURED HOMES.

This information is right off the HUD.gov web site. You have got to use this if you are doing FHA work. It is your friend.

 

[PropertyEconomics]

Noreen .. you have missed that it is "on frame" ... I too have the same question regarding On-Frame and FHA and hope someone will answer the OPs question.

 

[Non Sequitur]

Here's a recent post by what many consider "THE source" of all things manufactured and modular:

http://appraisersforum.com/showpost.php?p=2207959&postcount=16

And here's a post that goes into a little more explanation but seems to contradict Mrs. Stratton:

http://appraisersforum.com/showpost.php?p=1777659&postcount=1

FWIW, in my experence on-frame modulars are a no-no for Fannie and are O.K. for FHA (not sure about Freddie-seems to be conflicting info and I don't work for them). I have completed reports for both types of construction (REO properties), they are common in some of my coverage areas due to re-building after Hurricane Katrina.

 

[Noreen]

Noreen .. you have missed that it is "on frame" ... I too have the same question regarding On-Frame and FHA and hope someone will answer the OPs question.

PE, "On Frame" MODULAR, to me, would reference, IN MY AREA, steel carrying beam, which is the best, no sagging structure there. What is confusing is, it seems that there are different standards and terminology in different parts of the country. When I am in doubt, I email my HOC, print out the guidance and put it in my folder. Now if he's talking a "chaise" that's manufactured and a whole 'nother ball game. HUD.gov is still the best place to reference info for these things though.

 

[Non Sequitur]

An old thread discussing on-frame modulars:

http://appraisersforum.com/showthread.php?t=85351

 

[PropertyEconomics]

PE, "On Frame" MODULAR, to me, would reference, IN MY AREA, steel carrying beam, which is the best, no sagging structure there. What is confusing is, it seems that there are different standards and terminology in different parts of the country. When I am in doubt, I email my HOC, print out the guidance and put it in my folder. Now if he's talking a "chaise" that's manufactured and a whole 'nother ball game. HUD.gov is still the best place to reference info for these things though.

On-Frame as I understand it is that it is built on the steel frame, not just hauled to the site on one. I have never heard of a "chaise" so that must be particular to your area ... the OP asks a very important question and I agree a question to HOC may be necessary. FNMA is very clear .. they do not consider these single family homes ....

 

[Jo Ann Meyer Stratton]

On frame/chassis/steel undercarriage modular homes are factory built homes that require the metal frame/chassis/undercarriage for structural support. That metal "thingy" remains under the home forever. Fannie Mae defines manufactured homes having a metal frame, in their guidelines they state that a home with a metal frame are required to be constructed per HUD building codes. That one line in their eligibility section does not accept on frame modulars because they are constructed to a local building code--not a national building code.

An "off frame" modular home is constructed in the same factory, same assembly line as the "on frame" modular homes and manufactured homes.

All of the above are eligible for Freddie Mac, FHA and VA. If there is a metal frame Fannie Mae only accepts manufactured homes. Both on frame and off frame modulars are reported on the 1004==however the appraiser should include any information and photos of any tags, insignias, data plates, etc they find on the exterior and in the interior of the home. Do NOT use the 1004C for a modular home!! The 1004C asks questions regarding the HUD building code which does NOT apply to a modular home.

Also be aware of the assessment and taxing policies in your local area. Here in Arizona an Affidavit of Affixture is required to be recorded to enable the manufactured home or "on frame" modular home to be taxed as real property. "off frame" modulars would be treated the same as a home constructed on site.

All of the above (except the Arizona comments) applies nationally in every state.

 

[Noreen]

Yes, here if it is on it's own land, the bill of sale is recorded also ( under the Laws of Conveyance), a permanent foundation is put in place, certified by an engineer to meet the local standard and this now becomes real estate. If a "mobile" is in a park, with skirting, on rented land, it is then like a big car loan and does not qualify for a "mortgage". The construction differences are interesting and my "guess" is it applies to different overall climates. Thank you all, my "learn something new" moment of the day.