On frame modular on a 1004C?

[Lobo Fan]

I am working on an FHA report for an on-frame modular for the first time of combing both. Do the FHA MH requirements apply? I think it belongs on a 1004C since it appraises like a MH, but I am squishy on this. Any guidance will be greatly appreciated.

 

[Meandering]

And the year built is???


.

 

[Deleted member 128537]

I've never seen a modular on a metal frame. And I've done scores of them. Sounds to me like a manufactured home, thus it should be on the 1004C. But a modular home should not be on the 1004C since it is built to a different code.

 

[Jo Ann Meyer Stratton]

Both on frame and off frame modulars are reported on the 1004. Nothing on the 1004C refers to modular homes. Never report a modular on a 1004C.

With the 1004 include comments and photos of the crawl space, any insignias, labels, tags, data plate, etc, etc in the report.

Also comments that the property will not be eligible for either Fannie Mae or Freddie Mac. They use to be for Freddie, but they have gone the same route as Fannie. All homes on a frame according to F/F are considered manufactured homes. However homes on a frame are not eligible for F/F if they are not originally constructed to the HUD building code. Modulars are not constructed to the HUD building code. They are constructed to a local site built building code, the same building code as the surrounding site built homes.

On frame modulars are eligible for FHA or USDA or private financing only.

Also explain what procedures are required in your state for the on frame modular to be taxed as real property. For example here in Arizona the manufacturer issues a title to the on frame modulars just like manufactured homes, park models, mobile homes and vehicles. That title has to be surrendered to the Motor Vehicle Department and an Affidavit of Affixture recorded in the county where the on frame modular will be installed. Off frame modulars in Arizona receive a bill of sale.

As far as comparables you might have manufactured or site built or modular homes or a mixture of all three. It all depends on what the market reaction would be to that specific on frame modular.

Explain, explain, explain some more.

In the manufactured housing section of this forum is a link to Fannie Mae that describes the insignias that are issued in each state for a modular. They are different than the HUD label. The more recent modulars also have a piece of paper some where inside the home that is similar to the HUD data plate.

 

[Lobo Fan]

The year built is 2010 and it is on tribal land so an extra challenge involved. I was squishy on which form to use. I will get started on a 1004 UAD. This tribe does not have a casino, or oil wells, or any source of tribal income, other than traffic tickets issued by the tribal police to unsuspecting tourists. An on frame modular is similar to a manufactured home, built on a steel I beam frame, but to the local building code, not the HUD code. It was developed to get around zoning restrictions against manufactured homes.

Thanks JoAnn and everyone. The guru for all homes built off site.

 

[Jo Ann Meyer Stratton]

That is the main reason on frame modulars are constructed. They can installed in locations that restrict manufactured homes. Usually zoning will say no HUD code built homes allowed. That means an on frame modular is acceptable.

If it is located on tribal land, will it be taxable? They are not taxable in AZ. Does the tribal member own the land out right or has an agreement with the tribal council? If an agreement what type of terms? Special section of HUD/FHA guidelines regarding tribal rights.

When I was appraising manufactured homes on tribal land in Havasu Lake, CA I had to get all the information from the tribal council office since nothing was in public records. Made some interesting situations. I won't accept orders in the San Carlos Apache Reservation because of the lack of public information.

 

[Lobo Fan]

The land is called fee simple-restricted in that it can only be sold to other tribal members and must be approved by the tribal council. It is not on the county assessor's roles. FHA 184 loans are designed for providing loans with no comps. They largely rely on the 1007 cost approach form. I am loading private land comps right now, mostly just for reference. I did one of these a couple of weeks ago, where it was a new MH home on private land, out in the boonies. Nice piece of land though. I saw some antelope and an eagle that day.

 

[CANative]

You can also find sales on fee simple properties and extract out the land value to use in a sales comparison approach. I've done 184 assignments that way (both sales and just cost).

The value is not strictly market value as we usually define it.

 

[Lobo Fan]

Thanks Can, that is exactly what I did and filled out a 1007 cost approach, which is thre value the lender really wants. The comps are more for my personal edification. Now my question is about FHA MPRs on the modular. I am assuming they are the same as a MH in terms of structural engineer signing off on the foundation and an attached deck/porch.

 

[Terrel L. Shields]

Locate the tribal appraisers - many tribes have them and they can give you info. I tend to avoid tribal assignments.