Is the assignment type a Purchase?

[apprtech]

I am appraising a proposed FHA manufactured home that is being bought by the borrower to go on the property that he already owns. I was sent a one page sales invoice by the AMC & Lender with the data on the home along with the sale amount, tax, and any improvements being made. I questioned early on in the process when they had the Assignment Type as a real estate purchase. The appraisal was completed on a 1004C form and the AMC is saying that I should have marked Purchase and filled in the data about the purchase (ie the contract information). The sales invoice area on the 1004C form is where I discussed looking over the sales invoice that included the amount and the date signed. There wasn't a traditional real estate contract to fill out the information on in the appraisal.

Should the Assignment type been Purchase, Refinance or Other?

Jeff

 

[TerryRohrer]

I would never call it a purchase. Normally, I would call it a refi, but the same debate going on Facebook has some calling it other, which I could live with.

 

[residentialguy]

I wonder if it could be considered a type of construction loan

 

[Fernando]

Where's the contract with buyer and seller?

 

[Terrel L. Shields]

a proposed FHA manufactured home that is being bought by the borrower to go on the property that he already owns.

If it is not a new manf. home, then FHA will not fund the purchase. It is a purchase. Call you direct endorsement underwriter at FHA, explain the problem and ask their guidance. Again, if the unit is not NEW, then FHA will not fund it. And make sure to require an engineered foundation.

 

[J Grant]

I am appraising a proposed FHA manufactured home that is being bought by the borrower to go on the property that he already owns. I was sent a one page sales invoice by the AMC & Lender with the data on the home along with the sale amount, tax, and any improvements being made. I questioned early on in the process when they had the Assignment Type as a real estate purchase. The appraisal was completed on a 1004C form and the AMC is saying that I should have marked Purchase and filled in the data about the purchase (ie the contract information). The sales invoice area on the 1004C form is where I discussed looking over the sales invoice that included the amount and the date signed. There wasn't a traditional real estate contract to fill out the information on in the appraisal.

Should the Assignment type been Purchase, Refinance or Other?

Jeff

How do you value a MF apart from the land?
Whether a purchase or not, if the appraisal excludes the value of the land because they already own it, the valuation of the structure itself seems more like a cost approach assignment or real property.( personal property) valuation le

 

[Tiffany Gibbons]

If it is not a new manf. home, then FHA will not fund the purchase. It is a purchase. Call you direct endorsement underwriter at FHA, explain the problem and ask their guidance. Again, if the unit is not NEW, then FHA will not fund it. And make sure to require an engineered foundation.

By proposed, OP means not on site yet, so it is new. Borrower just already owns the land. They'll get plans and specs or go see the one on the dealership lot if they have one. It's like a construction loan, not a purchase. You value all of it together. No, you won't have any new construction sales, you do the best with existing manufactured homes on land.

 

[andrew81]

Proposed construction

 

[apprtech]

How do you value a MF apart from the land?
Whether a purchase or not, if the appraisal excludes the value of the land because they already own it, the valuation of the structure itself seems more like a cost approach assignment or real property.( personal property) valuation le

What the other fellow said. Not appraising the MFH by itself. The 1004C form has an area for purchase contract, and this isn't a traditional purchase contract more like construction contract where a owner is hiring them just to build the house to go on their lot. I would also mark Other and write construction, but this lender is insisting it is a purchase.

 

[Mike Ault]

What the other fellow said. Not appraising the MFH by itself. The 1004C form has an area for purchase contract, and this isn't a traditional purchase contract more like construction contract where a owner is hiring them just to build the house to go on their lot. I would also mark Other and write construction, but this lender is insisting it is a purchase.

Insist that it's "a refinance with improvements" back at them, just to check their argument. Below is what needs to happen for you to comply with their wishes. The MH dealer doesn't actually need an "interim construction loan", they just need the land deeded over to them so that the permanent loan can be represented as a purchase.

The process of temporarily deeding a piece of land over to a builder for an interim construction loan involves providing temporary financing for the construction of a property. This interim construction loan is usually valid for 18 to 36 months and is settled once a long-term financing option, such as a permanent mortgage, is obtained