Manufactured with Stick Built Addition

[Damon Pedersen]

Doing an FHA appraisal on a 1998 manufactured home. It is a 28' x 48' home and on one end, where the exterior door would have gone outside, they added a 12' x 28' addition. Add on was done at time original house was set on basement and the basement is under both the original home and the addition. It does not appear this affected the structure of the original home as they did not cut into the original walls, but rather used as exterior door for access to the addition. (Where the exterior door would have been it is now just a typical finished opening giving access to the addition)
Are there any FHA issues with such an addition that I am missing?
Is an engineer's certificate required since they did not alter the structure of the original frame?

 

[stefan olafson]

I'd use the 1004 C form for manufactured homes and include a lot of photographs and a long well written narrative about the addition. You still need the HUD numbers and serial numbers of the sections of the manufactured home also.

 

[Ray Miller]

I'd use the 1004 C form for manufactured homes and include a lot of photographs and a long well written narrative about the addition. You still need the HUD numbers and serial numbers of the sections of the manufactured home also.

yep, yep and more yep. Sold

 

[CANative]

I'm not sure if the above posts answered the question. The issue involves post-consumer sale alterations/modifications and IMHO this dials up the complexity and potential for serious liability concerns for the appraiser.

From NADA...

"At this point the HUD regulation is rather hazy, no specifically preventing the owner/consumer from making their own alterations or modifications.

In NADA's opinion this can have serious liability consequences for all parties involved (lenders, insurance firms, sellers, brokers, appraisers, etc.) in the subsequent re-sale of a structure with non-reported owner completed alterations that may cause, at a later date, the homes destruction or worse, a loss of life.

NOTICE: Some states, by regulation and with monitoring agencies (SAA's) require owners to submit plan approval, with fees for permits and inspections, before changes can be made superceding the national Title VI HUD code regulations..."

(BTW... California has such requirements. Not sure about MI, but I think it does)

SAHOC (Santa Ana Home Ownership Center) states that HUD/FHA is not concerned about permits, and it is up to the appraiser to determine if there is a condition which adversely effects livability, soundness or structural integrity. But how is the appraiser supposed to make this determination? Even if it looks good now, it might take years to bring the house down.

Here is a quote from Chapter 8 of 4150.2:

o Additions or structural modifications may put the home at
risk if changes were not performed in accordance with the
HUD Manufactured Home Construction Safety and Standards. If
the appraiser observes changes to the original home, an
inspection by the State Administrative agency, which
inspects manufactured homes for compliance, must be
required. If there is no agency willing or able to inspect
existing homes for compliance to the Manufactured Home
Construction and Safety Standards, the manufactured home is
unacceptable and should be rejected.

 

[stefan olafson]

Greg doesn't think the questions were answered, so here are my specific answers for you!

Are there any FHA issues with such an addition that I am missing? - Because you're in Iowa and not California, I'd email the HOC for your area of the country to make sure. My opinion of that HUD/FHA doesn't concern itself with permits or other stuff. They are concerned that a good description of the improvements are included and a discussion of any safety and sanitary issues is completed. Since you kind of state it looks like a pretty good quality addition, just state that.

Is an engineer's certificate required since they did not alter the structure of the original frame? Again, check with your area HOC but I don't think so?

Just tell the truth and explain explain and explain again.

 

[Lawrence R.]

I agree with Greg...it all looks good when it is new.

Here in the Assessor's office, we see firsthand what happens after a few years, when the roof pitches weren't properly joined, causing an insidious leak that eventually rots something completely out...or when one half of the roof has caved, etc, etc.. and now the owners want it removed for taxation, because it has been reduced to a zero value.

 

[stefan olafson]

Lawrence,

Unfortunately an appraisal does not take into accounty what might happen in the future. You report what you see, if there were permits you mention them, if there appears to be a problem you condition the report on an inspection.

Disclose all you know and if you don't know enough find others to assist you and disclose that in the report also.

 

[Lawrence R.]

Lawrence,

Unfortunately an appraisal does not take into accounty what might happen in the future. You report what you see, if there were permits you mention them, if there appears to be a problem you condition the report on an inspection.

Disclose all you know and if you don't know enough find others to assist you and disclose that in the report also.

Does disclosing what you know include that 85% of the additions you see after five years are falling apart?

I am simply agreeing with Greg that looks are deceiving, and that the appraiser should know that these are not just run of the mill additions...many are non permitted, uninspected and not up to any code.

If you know that, then you must act accordingly. I think you would be better off recommending an inspection by a professional in this arena, every time. Most appraisers cannot determine whether these additions are sound or not. Just that they APPEAR sound from an non expert point of view


And by the way, ERC appraisals, and most commercial appraisals do make suppositions about things that might happen in the future...though I do get your drift about this individual situation.