Please help/1004c Plans & specs

[Jo Ann Meyer Stratton]

Who is ordering the appraisal assignment? A lender or the borrower or somebody else not associated with lending?

The lender should know at this point whether the financing will be FHA or conventional--if not it is going to cost them additional fees. If it is not the lender, the appraisal report should be on either the AI Residential form or the General Purpose form that some software offers.

I will make some guesses about the sequence of events if it is a lender that doesn't know which program to put the borrower in:

The lender orders an assignment for a conventional loan product. You complete the report on the 1004C "subject to" and send them an invoice. Then when things are complete, the lender orders a 1004D and you send them a second invoice. Don't do any thing else until those two invoices are paid.

If after you have submitted the 1004C for a conventional loan product, the lender changes their mind and decide they want to do a FHA loan, you prepare a new 1004C so that it meets FHA guidelines and make it subject to if you haven't completed the final. Depending on the time frame you may have a new effective date for your opinion of value and maybe even some new comparables/pendings/actives in your new report. The lender now owes you the appraisal fee for the original conventional report and also a new appraisal fee (your business decision for the amount) for the new appraisal report. They decide to stick with the FHA loan product, so you complete the CIR and another invoice. If they decide to use a conventional loan program after all that it would be a new 1004C "as is" because the home would be completed prior to the new effective date.

If at first they order a FHA product and then change to conventional, again they should be charged for two appraisal reports--again your business decision of the two fees plus a third fee for the final 1004D.

If they at first order a FHA and stay with the FHA all through the process, they will order a CIR and there will be two invoices, one for the 1004C and one for the CIR.

So you need to clarify your intended user and intended use prior to starting the project--much clearer chain of actions that way.

By the way--have you taken the manufactured home seminar taught by Rich Heyn for the Appraisal Institute yet? I highly recommend that seminar, a lot of your questions would be explained and answered during that seminar.

 

[prasercat]

Great detailed information for an unsusual situation. All your detailed responses are greatly appreciated - Thank you Jo Ann! P.S. I always collect COD before issuing reports outside of the majors. This lender is: Guffey Home Loans Div Vanguard M&T, Inc., out of the State of Utah. This is my first with them. The loan officer stated she likes to do it this way, since most times the borrower ends up going conventional (to paraphrase) and then if they want to go FHA, the ask the appraiser to "change the appraisal to an FHA", which she recognizes creates more costs. I'm glad she recognizes that because it will be a new appraisal in that case! Good rest of the weekend!

 

[prasercat]

Yes, you need a copy of the manufacturer's invoice to the dealer--see the last question in the contract section of the 1004C.

The loan rep :new_2gunsfiring_v1:, whom states that all she does is manufacturered homes and covers the western region of the US, that she never gets a request for a "manufacturers" invoice on a plans and specs deal. The appraisers that she uses have always used the dealers invoice. In her prior call to me this morning she said that a manufactured invoice isn't produced until its ordered.......hmmmm.... Is that a sad commentary on the general appraiser community's apptitude regarding MHs or is she pullin' my leg? She's still trying!......but it looks like I'm the first!m2:

 

[prasercat]

Yes, you need a copy of the manufacturer's invoice to the dealer--see the last question in the contract section of the 1004C.

Just FYI - I got nowhere with the loan rep because they couldn't get it. I called the dealer handling the sale and he said that they can't get what they call the manufacturer's invoice until construction is finished - they also call it their NCO. then I though of what Jo Ann said, that is was the "Plans & Specs" between the manufacturer and the Dealer and then he said - "Oh, that's what you want!, I can get you that, that is what we call our order confirmation from the manufacturer, so we know what it will cost. So in the future, I will refer to this item as the "plans and specs between manufacturer and dealer or the "order confirmation" from the manufacturer, and I won't bother the lender, since they don't know and it creates unnecessary tension with the lender - not a good business protocol when its not necessary.

 

[Couch Potato]

As you do this job, keep in mind that appraising manufactured homes, new construction in particular, can be the fast track to finding yourself in front of your local appraisal board trying to keep your license. There are a number of pitfalls for the inexperienced (and experienced for that matter.) Since you haven't done one in a long time, I suggest getting another local appraiser to proof read your report for you.

Sounds like your doing a decent job, but do be careful.

 

[RSW]

The appraiser does not do a CIR on proposed construction appraisals for FHA. This would go for a proposed mfg home appraisal too.

You really need to figure out what your SOW is before you start this assignment. It is either conventional or it is for FHA. You can't do an appraisal for a conventional loan and then suddenly switch it over to FHA. As you stated, the indended use and users are different. If you are doing a conventional loan appraisal then you would use the 1004D or a letter to report the completion inspection requirements. If you are doing a FHA appraisal then you don't do the fnal inspection. A certified inspector with HUD/FHA will do that inspection.

I am confused about your first post where you were talking about the purchase agreement. Does the borrower own the land already or are they purchasing it by itself? If they own it, you would report the use as a construction loan. If they are purchasing the land in one contract and the manufactured home in another, then you would only report the land contract at the top of page 1. You would have to report the information about the dealers invoice in the report in the approperate section.