On frame modular

[Sid Holderly]

MFG /Modular

If it is on a chassis how can it be a modular? Manufactured homes have steel frameworks with rails for mounting the wheels and hitch. A modular comes on a trailer and is lifted off of the trailer an put on a foundation. It might be a 2 or 3 unit manufactured. I have never seen a modular with an attached chassis. If it is a manufactured it has certification tags on each half or third.

However on a larger lot like this the best comps are likely to be on similar sized acreage. The acreage may have more value than the improvement for the subject and comparables. That might be a problem for some lenders.

Use the long term search for manufactured to modular or stick value differences. In my area average or better manufactured's currently are significantly (15 to 20%) below modular or stick which are essentially the same.

Very high end manufactured's (full drywall, 6" walls, Hardwood Trim, corian/silestone type surfaces, good composition shingles, and good vinyl siding with brick ascents having full perimeter block or brick foundations skirts) in rural and recreational areas sell close to standard stick or modular homes if there is a local lender that will finance them.

 

[Rich Heyn]

If it is on a chassis how can it be a modular?

The building code is the determining factor, not the chassis or lack therof.

 

[gregb]

Some discussion of the differences between modular and manufactured:
http://www.vahomeloanexpress.com/pages/definition__financing_modular_vs_manufactured_homes
http://www.modularhousing.com/wiki/index.php?title=Modular_Housing_Defined

 

[Lobo Fan]

This one scares the crap out of me. Their last appraisal was made with all stick built comps and it was sold to them using all stick built comps. I tried to explain that an on frame modular was considered to be the same as a manufactured by FNMA but not sure that the full impact of what I was relling them actually sunk in.

 

[Mr Rex]

This one scares the crap out of me. Their last appraisal was made with all stick built comps and it was sold to them using all stick built comps. I tried to explain that an on frame modular was considered to be the same as a manufactured by FNMA but not sure that the full impact of what I was relling them actually sunk in.

Not exactly. Fannie Mae simply does not recognize on frame modulars as eligible for their lending criteria. The other biggun's, Freddie, FHA, USDA, VA etc suggest using comparables of similar quality if no other modular comps are available.

 

[Jo Ann Meyer Stratton]

First verify which building code was followed while it was under construction in the factor--same building code that is required for site built home in the vicinity of where it will be installed = a modular.

Next, does it have a steel undercarriage or frame or chassis? If so, it will NOT be eligible for Fannie Mae. Freddie Mac, FHA, VA don't care. Contact your client before doing anything else if there is a steel frame. They might plan on selling the loan to Freddie Mac and you can forge onward. Report it on the 1004.

The off frame modulars (no steel undercarrigage or frame or chassis) would also be reported on the 1004 and they are acceptable by every body.

Depending on the quality of the subject, a mixture of manufactured and / or site built home could be used as comparables. Again depending the the quality, finish, upgrades, interior finish, etc--all site built comparables might be used in the report.

Modulars (both on frame and off frame) and manufactured homes could be as wide of quality of any site built home. In some cases they are better quality constructed local site built homes because they are built in side a controlled atmosphere. None of the materials are exposed to the elements, every board is cut precisely with large equipment. Which means they don't have any boards that were cut three times and still too short.

 

[Lobo Fan]

It is an IRC code, on frame, off site built frame and stucco detached home with a pitched shingle roof. It was of Q# quality and C3 condition. There was a 6 burner Viking range in the kitchen and a large enclosed deck on the back. It is about 2400 sf and the deck is another 500. There is a 2 C detached garage with a workshop area and connected to the main house by a covered walkway. 22 rolling acres with some small pinon and juniper. An arroyo on the property means good well water.

Most site built homes start at $400K and go to over $1MM. One corporate retreat ranch sold for $12MM. So there are some very high dollar properties in the area.

The only manufactured comp was a 1,000 SF POS singlewide on 0.25 acrs=es and 10 miles away and it closed in 01/2011. Plus it is next to the max security state prison.

The end result is that I declined the order.

 

[Ca Ar Independent]

The end result is that I declined the order.

That was a smart decision. Even if YOU felt you could provide a credible opinion of value, getting something like this past the UW stips and "review" teams would be a potential nightmare of endless revisions. Better orders will come along!

 

[CANative]

It is an IRC code, on frame, off site built frame and stucco detached home with a pitched shingle roof. It was of Q# quality and C3 condition. There was a 6 burner Viking range in the kitchen and a large enclosed deck on the back. It is about 2400 sf and the deck is another 500. There is a 2 C detached garage with a workshop area and connected to the main house by a covered walkway. 22 rolling acres with some small pinon and juniper. An arroyo on the property means good well water.

Most site built homes start at $400K and go to over $1MM. One corporate retreat ranch sold for $12MM. So there are some very high dollar properties in the area.

The only manufactured comp was a 1,000 SF POS singlewide on 0.25 acrs=es and 10 miles away and it closed in 01/2011. Plus it is next to the max security state prison.

The end result is that I declined the order.

You should have told the client the complexities and then upcharged them. It doesn't sound like a terribly difficult one to flesh out.

 

[Lobo Fan]

I upcharged once already for the location. The endless stips and explanations would have dragged on for weeks. Plus I would end up on some watch list for not having 6 comps within 90 days and 1 mile with minimal adjustments. Chalk this one up to experience I guess. Discretion is the better part of value.