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Manufactured home with addition

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alove

Thread Starter
Freshman Member
Joined
Dec 21, 2008
Professional Status
Certified Residential Appraiser
State
Tennessee
Does Fannie allow loans on manufactured homes with additions? Double-wide where it appears a window once was, someone (property is a foreclosure, of course) cut a hole for a door and added a stick-built addition (that leaks badly, of course). m2:
 

Jo Ann Meyer Stratton

Elite Member
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Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Check out the various links in this section of the forum.

Yes, they will loan on a manufactured home with addition. If there are any structural concerns you might want to make the report subject to inspections by the appropiate licensed contractor. In your report the livable area of the manufactured home only would be on the GLA line. Any additions have it further down in the grid, in the porch/patio area for example or one the blank ones near the bottom. Attempt to find other manufactured homes that have additions, make sure you split out their additions too so that you can compare apples to apples and oranges to oranges. Be sure and take photos and make notes of any and all tags, labels, seals, data plates, etc as well as the crawl space.
 

Mike Garrett RAA

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Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I've done a number of those for the VA and they were perfectly acceptable.
 

alove

Thread Starter
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Dec 21, 2008
Professional Status
Certified Residential Appraiser
State
Tennessee
I have been performing appraisals for about 15 years and have always rejected doing these reports as I know FHA will not loan on a manufactured home that has an addition. I am now faced with a foreclosure so I was wondering.
Jo Ann, you now sound like those pesky underwriters, kidding-I tried to locate such sales as you suggest because I absolutely agree that the apples to apples approach is best. I could barely find 3 sales that came even close to being actually comparable in all other instances besides having an addition in the entire county and we are pretty flush with manufactured homes. Never did find one that had an addition.
Terrel, Thanks for the letter. That one I was familiar with but I cannot find anywhere, in any advice from Fannie, that actually states additions on manufactured homes are acceptable.
I find many people on this forum that have done things "for years" but actually have no official document they can show you saying that such things are okay.
I guess what I should have requested was a document from Fannie stating something akin to -
Fannie does offer loans on manufactured homes that have an addition if it meets the following criteria....
One of the reasons I am asking this-and I know I'm opening a huge can of worms here-is because I am contemplating a bigger question in my mind.
If a manufactured home has few options in lending for a potential buyer, does it affect the value of the property. That is to say, if I can only get a bank loan for 5 years or less or some really unfavorable financing, should an adjustment be made because of the lack of financing for such a property when other manufactured homes you are comparing it to do not have an addition making financing more difficult to obtain where the pool of potential buyers would be smaller.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
Check your state's housing agency. Alterations or modifications to manufactured homes may require a state issued permit and not just the building permit issued by the local authority.

Altering or modifying a manufactured home could seriously compromise the engineering.
 

alove

Thread Starter
Freshman Member
Joined
Dec 21, 2008
Professional Status
Certified Residential Appraiser
State
Tennessee
Yes, I agree about the alteration-I believe that is why FHA won't allow additions on theirs as it compromises the structure.
I already checked the local government. They gave them a permit to allow the addition but it still doesn't tell me about what Fannie allows.
Thanks for trying to help.
 

Mr Rex

Elite Member
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Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Yes, I agree about the alteration-I believe that is why FHA won't allow additions on theirs as it compromises the structure.
I already checked the local government. They gave them a permit to allow the addition but it still doesn't tell me about what Fannie allows.
Thanks for trying to help.
Actually FHA does not prohibit additions.

Additions or modifications
Describe any additions or modifications made to the manufactured home since its initial placement on the site. Any subsequent additions or
modifications should not take the home out of compliance with the
Manufactured Home Construction and Safety Standards (MHCSS). If the
appraiser suspects that an addition or modification to the home poses a risk to the structural integrity of the home, the appraiser is to notify the lender.

 

alove

Thread Starter
Freshman Member
Joined
Dec 21, 2008
Professional Status
Certified Residential Appraiser
State
Tennessee
Mr. Rex,
Case-in-point-where did you find that information? I have never seen that before. I know I consulted our HUD field office and they told me they did not accept manufactured homes with additions. This is the reason why I want to see everything in writing because even the agency is sometimes incorrect when they give you direction. Thanks
 

alove

Thread Starter
Freshman Member
Joined
Dec 21, 2008
Professional Status
Certified Residential Appraiser
State
Tennessee
I was just pondering this further. Never mind where you found it-I didn't realize that was part of something I've read a million time. I thought they meant addition as in something on the interior not an actual structural addition. It would seem to me that any alteration of the M.H. would take the home out of the MHCSS because that label can only be given at the factory." A Manufactured Home is designed and constructed to the Federal Manufactured Construction and Safety Standards and is so labeled.. " Where would one get a new label? "as evidenced by an affixed certification label in accordance with24 CFR Section 3280.8;
 
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