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Manuf Home Check List?

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Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Underwriter states:

"Appraiser to complete the manuf home ck list to make sure s/property is in compliance with investor guidelines with regards to manuf homes"

No, I don't have "the" checklist does anyone else have "the" checklist?

I think this question has come up before.......
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
There are several floating around, some of the software vendors have one--I hate all of them!!! I have created one of my own that I could email you. Actually what I do is headline the top of the page Fannie Mae Guidelines, Section 304 - Factory Built Housing, effective June 30, 2003. I do not automatically fill it or any other out. I include all the following in one paragraph to my addendum. If the lender has a hissy fit and has to have a checklist then I prepare something like below. If their hissy fit includes the threat of bodily harm that theirs has to be used, I type in as many places as possible the last two sentences below.

Questions that are answered yes or no follow:

Classed as real estate:

Affidavit of Affixture recorded: (that is Arizona's procedure to enable it to be classed as real estate)

Recording of Affidavit of Affixture required prior to being taxed as real estate:

Attached to a foundation:
(Subject unit appears to have been installed per state and manufacturer's requirement for a
foundation--see attached photo of installer's insignia)

Constructed per codes established by HUD in June, 1976:
(See attached photo of HUD label on the exterior of the home)

HUD Data Plate information: Date of Manufacture___ Manufacturer____ Serial Number____
(See attached photo of HUD Data PLate, AKA Compliance Certificate)

Assumed the characteristics of site built homes:
(Wheels, axles and tongue have been removed)
Unit is installed above ground / at ground level with vinyl / metal / cement fiberboard skirting / pre-treated wood skirt wall / concrete block / native stone skirt wall as a perimeter enclosure:

Unit is frame construction with hardboard siding / clapboard siding / stucco siding and a pitched, composition shingled roof, comparable to site built homes in the marketing area.

Meets local zoning and building codes:

Note: The appraiser has observed the property for the purpose of offering an opinion of value only and is not a licensed contractor, installer, home inspector, or professional engineer.

If the client has any concerns regarding the frost line or soil conditions of the site or the foundation system, a professional in that field should be consulted.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Blue, I checked your profile and your e-mail is "private". I would have already e-mailed you the Wintotal Manufactured Home Checklist with the appropriate "unknown" checkboxes and comments section about why we can not answer. e-mail me at [email protected] and I will send you a pdf.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
She is one of the few with the badge. :p
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
By the way, Bill Pena of the Dallas Fannie Mae office posted a comment over in the residential section of the NAIFA chat room. He pointed out the exact wording that is in the guidelines--think about how it is worded.

"We require the factory built home to be permanently affixed to a foundation system---"

Note, they do not use the term "permanent foundation"--it is the affixtation that has to be permanent. Nobody has ever been able to agree on what a permanent foundation is--now it will be interesting to see what some people call a permanently affixed. Majority of Arizona does not require tie downs or anchors of any kind (since we don't have toronados or earthquakes is probably the governmental entities reasoning). When people choose to install tie downs, they typically choose the type that screw into the dirt. And why some installers charge very high prices to install a home per "FHA guidelines". Although if the manufactured home is NOT constructed basement ready, the home isn't even touching the skirt wall and the perimeter enclosure is not part of the foundation. And they still sneak in the screw in anchors if the licensed engineer isn't paying attention because of our frost line being at the top of the dirt, the concrete supports for the piers are on top of the dirt and there are no footings below ground. Just the footings for the skirt wall are partially below ground level. But with an FHA appraisal, that responsibility is on the shoulders of the licensed engineer---not the appraiser. Thats why I have been so thrilled with the National HOC Reference guide.
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
I have always considered a manuf home permananetly affixed if it is being taxed as real property by the County assessor. So....Is HUD stating something different?
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Depends on the laws of your state. Arizona has a document called an Affidavit of Affixture. The home owner surrenders their title from the Motor Vehicle Department back to MVD. Then they record an Affidavit of Affixture, information at the bottom of the page is the same info that was on the MVD title regarding model year, manufacture, size and Factory List Price. Then the top of the page is a statement whether the home has or has not been taxed in Arizona before, the legal description that the home will considered as part of the real property. Then the assessor's office in the next tax year, treats the home just like they would any structure constructed on site (using their method for valuation of manufactured homes). That enables the home to be taxed as real property and was the sole purpose of the legislation back in the late 1970s after 30 year financing for manufactured housing became available. The recording of the Affidavit of Affixture only meets the requirement that it be taxed as real property. It has absolutely nothing what so ever to do with anything physical or how it was installed or what type of foundation it has or anything else physically. It could be sitting there with tongue, wheels and axles still attached, still hooked up to a semi--but it is being taxed as real property. Which means the land itself is the collateral for all the taxes. The county places a lien on the land for all delinquent taxes and that lien stays there forever and ever until they are paid, even if the home is physically removed or was removed years ago. In Arizona a manufactured home cannot be moved down a state highway unless it has a tax clearance from the applicable assessor stating all personal property or real property taxes have been paid or they cannot get a moving permit from Motor Vehicle Department. The mover is subject to search by the Highway Patrol at anytime and has to produce that document--even if he was only stopped for a dim headlight. But manufactured homes (just like site built homes) get moved around without all the proper paper work, but happens very, very, very few times.

You should have a long heart to heart talk with your local assessor. What procedures are done in your state that enables a manufactured home to be taxed as real property. Is it only paper shuffling like Arizona? Or does your state require a physical inspection by the applicable governing official before it can be taxed as real property? Are there physical requirements for the how, why and what of the foundation in your state for it to be taxed as real property? What government agency in your area inspects the installation of the manufactured home? What requirements do they have, do they issue any type of document? etc, etc, etc.
On the HUD.gov website is a list of state agencies that are responsible for manufactured homes within that state--has phone numbers, you can start with them to ask questions. Then on to your county and city governing agencies.

HUD has simplified it for appraisers with their National HOC Reference guide--all manufactured homes (except when refinancing an existing loan, because theoretically there was one done originally) have to have the foundation inspected by a licensed engineer and included in the insuring file. That is a condition the appraiser puts on the VC sheet, then the underwriter has to make arrangements for that to be done. If the underwriter fails to have an inspection by a licensed engineer--they are at fault--not the appraiser. The appraiser's opinion of value was subject to inspection and approval by a licensed engineer.

Now with Fannie Mae's guidelines the wording becomes different. And I have questions going in all directions to find out some answers. Their wording does not say permanent foundation (good thing, since no one can agree on what one is!) but says it must be permanently affixed to a foundation. So then it becomes the underwriter's responsibility to get whatever verification they can from the applicable local or state government that the installation was done per their requirements. An appraiser could look for any insignia or ask for any paperwork the home owner has from the local government inspection agency. Again in Arizona, there is an insignia that licensed installers attach to a manufactured home, checking off what they have done, some homes may have several insignias if work was done at different times. The state reviews the installation and if the installation isn't done per state requirements they will not issue a document similar to a certificate of occupancy. Homes are not required to be installed by a licensed installer, but the state still inspects to see if it was installed properly. An installer that does not do it properly could get their license taken away from them and have to pay huge fines. And redoing an installation over and over again until the state approves can get very time consuming and expensive! So typically, installers attempt to do it properly.

So it becomes a good question, what is permanently affixed? I guess if it meets local and state requirements for installation--it is acceptable to Fannie Mae (regardless of the appraiser's opinion). Again, I think I will be putting the burden of proof on the underwriter's shoulders to get whatever verification they think they need from the local or state authority.

So there are two separate issues that may or may not be answered by the same source.

Is the home being taxed or capable of being taxed as real property?

Completely separate question--has the installation been approved by local or state government?

If FHA--require an inspection by a licensed engineer.

Answers depend on your state/county/city laws and procedures.

So as in all appraisal questions---the answer is---it depends.
 

Tom McDowell

Member
Joined
Jan 19, 2003
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
North Carolina
NC Appraisal guidance was "If the axles and tongue are removed and it is properly tied down then it is permanently affixed."
 
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