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Manufactured Homes

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Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Just had a lady call about an FHA appraisal on a manufactured home. She was basically asking me what I would charge just to tell her if her Double Wide would meet FHA standards. If so she needs an FHA appraisal. I tried to quiz her on the phone. Elderly lady and I don't want her to waste her money if it's obviously not going to fly FHA.

I will review the Handbook but I also thought someone might know off the top of their head any deal killers that I could ask her about over the phone?

One I thought of was the data plates on the exterior. She said the home had been resided so I am assuming the data plates are not accessible. She found the sticker with serial numbers and all the other info inside the kitchen cabinets as we talked. Is that acceptable with FHA or do you have to see the data plates? I asked about land size (rural area), private roads and everything else I could think of.

Anyone got any other biggies that would kill it that I could ask before I waste a lot of time on this one?
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
The tie downs or anchors will need to be attached to the concrete footings. The perimeter enclosure will need to be concrete or masonry or pretreated wood. You could ask her about those items even before you get there. If she answers yes, then full speed ahead for you, but the VC sheet would have the requirement for an inspection by an engineer. But if she knows there are not any tie-downs or that the skirting is vinyl--that stops the FHA loan right there unless she wants to have the home foundation and perimeter enclosure retrofitted to met HUD requirements. And warn the lender that they might have to research the HUD code verification if her siding has covered over the HUD label. While at the property, be sure and take a photo of the data plate inside, write down the information you find (especially the serial number so the lender can verify the HUD code) and take a photo of the HUD label and note the numbers on the exterior.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Read Chapter 8 of the 4150.2 and Section 1-9 of the National HOC Reference Guide.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
First off, what good will an FHA appraisal do her?

Your order has to come from the lender with a case number.

As to the house qualifying for FHA, the first obvious question is, how old is it. If it was manufactured after 1976, most likely it is HUD code.

As to the particulars of tie downs, perimeter foundations, etc., those are UW decisions. These are questions for a LO to talk to her about. Let him spend his time trying to determine if the property is acceptable. If you tell her it is and then she gets turned down because of something that was over looked, you have some liability. Why put yourself in the middle of the lending process unless you are holding yourself out as an expert in the field?

I would just ask the date of manufacture and then tell her that she has to talk to the lender to see what particular requirements they have for FHA financing.

Just appraise 'em. I wouldn't try to act as a pre-qualifying agent for the lender.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I got a call from the LO shortly after I posted this. Out of state lender and seems FHA is the only way this loan is going to fly. Don't know why and it doesn't matter. But it seems the lady was mixed up and the LO has asked her to get a structural engineer to look at the foundation. She called me for some reason, maybe because I am an Inspector too? We talked a bit about the deal now I have the full details I think it is a no go.

Jo Ann, assuming you know of what you speak (and I don't doubt you do) I can tell you that I have never seen a Manf. Home foundation set up that way around here. So there is no sense even proceeding with this one. Plus since the unit has been resided, sounds like a big waste of time! If the lender calls back I will point this out and let them sort it out.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Jeff:

Based on the recent FHA/REO seminar I attended in Denver (Jo Ann was at the one in Vegas and got the same scoop), I can tell you that HUD appears to be making a concerted effort to get out of the manufactured home lending business. That is a quote BTW. Fannie is heading the same way, but hasn't gotten as clever about the specific wording that would permit such descrimination... and is also waffling on losing the $$$ very large slice of middle America is dumping into that style of home.

I can assure you that the modular FHA loan is going to get close scrutiny, and would place a fairly substantial personal cash bet that a higher percentage of mfgd housing FHA appraisals are going to get reviewed than standard housing.

The REO stats waaay exceed FHA tolerences at present and they are going to be head-hunting for someone to blame if 'after the new rules' mfgd loan goes sour. They (apparently) have lots of stock at present and are not happy about it.

I would strongly encourage any FHA appraiser to take some extra time to read the recent changes as regards FHA/Mfgd and cover their hineys...
 
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