Modular vs. Manufactured. Home

[Birdman]

Recently I did an appraisal on a home that appeared to be a manuf. home. I could not find a HUD plate though. Found the mfg. name, serial number, etc. Turned the report in and the lender has requested that I change my report over to a 1004 form from the manuf. home form. They used IBTS institute research and they said it was not a manuf. home. I used manuf. homes for comparables. The subject property looks like all of my sales. Design & appeal is the same as my comps. She asked me on the email if I needed to change comps. This is FHA

Do you use the 1004 form on modular homes? Also do you use stick built homes for comparables?

Thanks in advance for your help.
Steve

Here are pics...

 

[John Farnsworth]

I had one of those a few months back. Everything told me it was a manufactured home. I found numbers and labels under the sink but no HUD info. I ended up calling the state department for manufactured homes and asking them what it was. They asked me if it had this certain seal of approval with a number starting with blank blank. Sure enough it was a low grade modular built in 1987. I took a picture of all the numbers and seals. I contacted the lender and they cancelled the job.

 

[Pamela Crowley (Florida)]

If YOU can't tell the difference and believed it was a manufactured HUD code unit, that is probably what the market buyers think and that is what is 'comparable'. BUT, you MUST find out what it really is. Since you do have the manufacturer and serial number, follow up by first asking for the IBTS institute research documents to prove it's a modular instead of a HUD code manufactured. Then, if it really is a modular on a steel frame, ("on frame modular"), it's not qualified for Fannie or Freddie and really should NOT be on the 2005 Fannie/Freddie appraisal report forms.

Did you get photos of the bottom of this thing? We could help you more if you would post some photos of it from the front, back, and bottom.

 

[Lawrence R.]

Pam is right, beware the dreaded "Hudular"...

As far as what it is, if it is a mod, but it compares to HUD code homes, the report would go on a 1004 still, but you would use HUD's for comps.

If it is a HUD, put it on the 1004C.

 

[Ray Miller]

This is a general posting not just to OP. Me thinks a lot of appraisers are doing Manufacture Homes and don't have a clue as to what type of Manufacture home they are are working on, or how to go about getting the necessary data to establish what they are working on?

Me also thinks this could be a USPAP problem if they are continuing to do the report with out the knowledge and sending it in.

 

[Jo Ann Meyer Stratton]

If the subject is an "on frame" modular the report would on the 1004 form with comments in the report it is not eligible for Fannie Mae. It is eligible for Freddie Mac, FHA and VA--therefore the 2005 version of the 1004 form is applicable. And your comparables would be what ever a potential buyer would consider as substitutes--maybe all would be HUD code manufactured homes, although if you can find other "on frame" modulars that have sold that would be best (because of the Fannie Mae restriction on lending). Site builts might be applicable too, all depends on the market perception of the subject.

 

[CANative]

I don't think I've ever come across a HUD code MH that didn't have a back door off a laundry or utility room.

Did you inspect the crawl space to see if there is a steel chassis?

 

[Birdman]

Greg,

I did see a steel frame underneath, yes.

Steve

 

[TN Pro]

This is a general posting not just to OP. Me thinks a lot of appraisers are doing Manufacture Homes and don't have a clue as to what type of Manufacture home they are are working on, or how to go about getting the necessary data to establish what they are working on?

Me also thinks this could be a USPAP problem if they are continuing to do the report with out the knowledge and sending it in.

I couldnt agree more. I just did one that was in the MLS as a Modular. The owner swears her bought it as a modular, Realtor swears its a modular, they are pre-approved to buy a modular.
I get out there, its a manufactured HUD code home. Guess what, they tell me i dont know what im talking about, the owner calls me an *******, and they get another appraiser.
Other appraiser calls it modular, uses stick built homes.

3 weeks later i get a call from the original lender asking me to complete my report as they now know that its manufactured.

Dean

 

[Mztk1]

Modular houses like the one you have pictures of, if it is modular, will have the dealer and manufacturer name on a sticker inside. If not ask the owner for the paperwork and they should have that info. If you really cannot tell if it is modular or MFH, write down those names and call the dealer first with the serial number and the original owner's/buyer's name. They can supply you with all the paperwork identifying it as either a modular or manufactured house. Plus, if it is a modular, they can supply you with other comps to use that are modular in the area.

When appraising a modular I do my best to only use modulars as comps, especially when they look like manufactured houses, and have never done one where I didn't have at least one modular similar in overall construction as a comp. Of course I prefer modular resales and will travel distances to find one.

When I only have one modular that looked like a MFH as a comp I have used a combination of MFH and stick built site house and made quality and/or appeal adjustments as best that could be identified from the modular comp.

The important thing is you bracket the subject's overall appeal with the best comparable data available.