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FHA Manufactured Homes?

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BigBlueGA

Thread Starter
Junior Member
Joined
Mar 13, 2002
Professional Status
Certified General Appraiser
State
Georgia
Looking for information pertaining to FHA guidelines for mobile home appraisals, specifically about using stick built homes as comps where mobile home comps are not available... anybody know where I can find these? Tried HUDCLIPs but got lost... Thanks.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Check out my article posted in the October issue of the Appraisal E Gram on the NAIFA web site. Is your subject constructed to HUD building code is the first question, second question is the home installed on and has concrete, masonry or pre-treated wood foundation and enclosure. Are there anchors and are they attached to the concrete foundation. FHA requires all that and a condition on the VC sheet would be to require an inspection of the existing foundation (or proposed after it has been completed) by a licensed engineer.

Now to your question about comparables. Just like any other appraisal assignment, regardless of client---what would a prospective buyer consider as an alternative to your subject? Would a buyer of a built on site home even consider your subject? If not, then no do not use site built homes for comparables for the manufactured home. You might have to go back in time or a longer distance than normal to find other homes constructed to HUD code to use as comparables. Do not use created sales or land/home packages as your first three comparables. You might have to use dated or older manufactured homes as your first three comparables and then have active, expired, withdrawn, canceled, pending manufactured homes as #4 and higher. Or a stick built home as #4 or higher if it is next door to your subject and has comparable appeal to your subject. If your subject is new construction, maybe one created sale as Comp #4 and higher to illustrate what people are willing to spend for new construction.

FHA is just like any other lender---what is their collateral risk, will they be able to sell the property for the amount of the debt? Created sales and typically stick built homes do not answer that question.

FHA is also just like any other appraisal problem, what is the best indication of what would the home sell for if offered on the open market with a willing buyer, seller, etc.

Remember standard appraisal techniques, methods and procedures! And of course explain, explain, explain and then explain some more!
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Be sure to download the Permanent Foundations Guide for Manufactured Housing from HUD. You will need this to determine whether the foundation meets HUD standards. Their standards for manufactured homes is much more strengent than for stick built homes. For example, treated posts (light poles) can get by for a stick built home but not for a manufactured home.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Unless you are an engineer or a HUD/FHA compliance inspector, the Appraiser does not determine whether the foundation meets HUD standards. Do yourself a huge favor and make the foundation compliance subject to the inspection and report of a FHA/HUD compliance inspector or engineer.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Only a engineer licensed in the subject's state can certify that the foundation does or does not meet the Permanent Foundation Guidelines for manufactured homes with FHA financing, a HUD inspector cannot. All the appraiser can do is describe the foundation materials (if you can see them) and then make a condition on the VC sheet for an inspection by a licensed engineer. HUD will accept only concrete, masonry or pre-treated wood so if steel piers were used and the perimeter is any other type of skirting/stem wall--then either those will need to be replaced or the home won't qualify for HUD financing. Also HUD requires the anchors to be attached to the concrete footings under the foundation, so again if no anchors or anchors only screwed or driven into the ground--anchors will need to be added or replaced. But the appraiser only observes and then writes a long addendum on the VC sheet--from there on it is the underwriters responsibility to order all the inspections and repairs or items the licensed engineer says is needed. Or the loan officer finds another type of loan program for the borrower in place of FHA.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Should of added--see ALL the pages in 1-9 of the National HOC Reference Guide. It changes the 4150.2.
 
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