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Manufactured home FHA elibility

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Dutchman

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Jul 11, 2007
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Certified Residential Appraiser
State
Washington
This is the situation:
A manufactured home built 1996, originally set up on acreage, title never surrendered so it remained personal property. This home was moved the second time and reset up. According to HUD, it lost it's eligibility for an FHA loan because of the second move.
Question: How much is the eligibility for an insured loan worth. I know what the property is worth, however I do not know if any value is lost because it is no longer eligible for an FHA loan.
 

Dutchman

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Jul 11, 2007
Professional Status
Certified Residential Appraiser
State
Washington
Eligibility = elibility (damn)
 
Joined
Jan 13, 2002
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Retired Appraiser
State
Florida
The only effect I know of is that FHA financing cannot be used. Unless FHA financing is what the vast majority of sales in the subject market area use to be able to sell a property, I don't see this as a value consideration.
 

Mike Garrett RAA

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Jan 14, 2002
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Certified Residential Appraiser
State
Colorado
Isn't that a Fannie Mae requirement also?
 

Lobo Fan

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Nov 28, 2004
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Certified Residential Appraiser
State
New Mexico
The only way to check this would be to study the sales of MH in the area and try to detect any premium paid for properties that went FHA. You need to watch out for the $100,000 list price, $103,000 sales price, FHA financing and no seller concessions (yeah right). Closing day 3% rebates are favorites in FHA financing.

Good thinking though...
 

Jo Ann Meyer Stratton

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Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Fannie Mae and Freddie Mac will purchase loans on manufactured homes if they have been installed in several locations through its lifetime. Only FHA has the requirement of only one installation, the home coming directly to subject lot from either a factory or a sales lot.
 

Dutchman

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Joined
Jul 11, 2007
Professional Status
Certified Residential Appraiser
State
Washington
I would say about 35/40% of MFH's in the area go FHA and I'm sure that there is an impact if there is no eligibility. I have watched sales prices but have not been able to determine any particular pattern as this does not happen with any degree of regularity. Conversations with Realtors and dealers have shed no light as most of them have no clue about the regulation to begin with. Anyone know of any other sources to check with? It surely would be appreciated as it has become a bone of contention between a reviewer and an appraiser.
 

Mike Garrett RAA

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Jan 14, 2002
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Certified Residential Appraiser
State
Colorado
Thanks Jo Ann...always nice to defer to the expert.
 
Joined
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Professional Status
Retired Appraiser
State
Florida
A discussion of this, suggesting the potential for extended marketing time and smaller number of potential buyers would be good. Might want to include that it's possible the sale price would be slightly lower than what is typical for similar property that are not excluded from FHA financing, but that a specific justifiable adjustment for this could not be found.

Anybody else want to jump in here about this???
 
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