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Pond as drinking water source for FHA?

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G-man

Member
Joined
Feb 4, 2002
Professional Status
Licensed Appraiser
State
Ohio
I have a new construction, modular home in a rural area which has a pond for its drinking water that I am doing the final inspection for. Pond water is not uncommon for the area and the dwelling has what appears to be the proper filtering system to deal with any health issues. The question is, does FHA allow a pond to function as a water source if no decent well is available. What would the owner/builder have to do in order for FHA to sign off on this type of set up?
Thanks for any information.
 

rtubbs

Junior Member
Joined
Jan 15, 2002
G-Man, you might want to look at the 4150.2

b. Unacceptable Conditions
The following water well conditions are unacceptable and must be noted in VC-4:
o mechanical chlorinators
o water flow that decreases noticeably when simultaneously running water in
several plumbing fixtures (the well may not be able to provide a continuous,
adequate supply of water)
o properties served by dug wells unless a complete survey conducted by an
engineer was delivered to the lender and subsequently given to the
appraiser
o properties served by springs, lakes, rivers or cisterns (3-6)

Are you sure that you're appraising a modular home and not a manufactured home?
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
If a manufactured home built to HUD code, you will need to have a requirement on the VC sheet for a professional engineer to inspect the foundation for compliance to HUDs Permanent Foundation Guidelines.

If a modular home built to UBC or CABO or BOAC or other local building code, the engineers inspection will not be required.

Does the home have a red HUD label at the left rear of each section?
 

Dave Doering

Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Missouri
I have a new construction, modular home in a rural area which has a pond for its drinking water that I am doing the final inspection for.

Do I understand that you are doing the final inspection. At least in our region (Denver) it is required that a HUD/FHA Inspector and not the HUD/FHA appraiser do the final inspection on any new construction. You might want to check with HUD before your client gets you crossways with HUD.
 

Karen Moore

Freshman Member
Joined
Nov 6, 2002
Mr. Doering
You are exactly correct. Manufactured Homes require a final inspection to be performed by a HUD Inspector and not the appraiser. Also, Mortgagee Letter 01-27 does not apply to Manufactured Homes (another common mistake). Charles Gardner, Director of the Atlanta HOC recently put out a circular letter clarifying compliance inspection procedures for MH, so I am sure that it is a somewhat common error. May I say that this forum and it's members are extremely knowledgeable and my thanks to Ms. Stratton for her excellent input on Manufactured Housing. I use her materials daily in my reviews and have yet to find her in error and I have all her NAIFA posts.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Karen:
Thank you for your kind words. Would you be willing to fax me a copy of that Atlantic HOC letter regarding manufactured homes? Although I am in Arizona, I attempt to keep current with any info I can find regarding manufactured homes. My fax number is 928-348-9971
Thank you.

Oh, by the way, my article on the NAIFA website in the October, 2001 Appraisal E Gram has two outdated bits of information because of the Fannie Mae guidelines that went into effect 6/30/2002. Fannie Mae will no longer finance a mobile home built originally built prior to 6/15/1976 that has been reconstructed to at least the 1976 HUD code; they will only finance a manufactured home that was originally constructed to HUD code. The other change is regarding single wides, single wides no longer are required to be in an approved project.
 

Karen Moore

Freshman Member
Joined
Nov 6, 2002
Ms. Stratton:
Sorry for the delay in my response, I had trouble as a Newbie :wink: accessing the forum. I am faxing you the above Circular today. So your in Arizona? Doesn't that put you in Santa Ana Homeownership Center? They put out alot of good information in their chat rooms, nice group. I don't deal with any of their loans so I am not sure if what I send you will be applicable for them however it is on the way. Have a good day. Karen Moore
 
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