Is the assignment type a Purchase?

[apprtech]

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.

I have an email into FHA to ask. The manufactured home is new.

 

[Tiffany Gibbons]

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.

/storage/emulated/0/Download/Mobile Home Cost Estimator.pdf
Also do a cost with the specs and engineering/affixation costs too for market support.

 

[Tiffany Gibbons]

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

They don't always deed over the land. Sometimes, that's the equity.

 

[sputnam]

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

Refinance. We appraise the land... and whatever happens to be (or was or will be) attached to it. It's the same as if a property owner contracted with a builder to site-build a dwelling on the property. The difference is that the dwelling is mostly built when it arrives at the site.

 

[Tom D]

the owner is being the developer in this case, i assume they are using some other funding to get it finished. if they also already bought the land, it is a refi. like above said, where is the agreement of sale, duh. if the land is currently under contract, then it is a purchase subject to, pending construction.
in most states you cannot have the sale of real estate without a contract.

 

[Anna Richardson]

Construction Permanent (Refinance)

 

[Anna Richardson]

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

 

[apprtech]

Construction Permanent (Refinance)

FHA said it had to be done as a purchase believe it or not. I wrote a small novel as to why I thought that was wrong.

 

[Anna Richardson]

This is a construction permanent product which is very much like a refinance. I think there may be an "other" option and if there is hit it and state that this is a construction permanent. If not it is a refinance. Check with you client to be sure what they prefer.

 

[apprtech]

This is a construction permanent product which is very much like a refinance. I think there may be an "other" option and if there is hit it and state that this is a construction permanent. If not it is a refinance. Check with you client to be sure what they prefer.

That was what I did the first time, they had me change it.