Pre-1976

[Thomas J Kirchmeyer]

We are appraising a mobile home built in 1968. My client wants to know is it a Manufactured Home or a Modular Home? I said neither, it's a Mobile Home, so on the 2055 form, under 'Is this a Manufactured Home' we checked NO. My lender wanted this appraisal completed on the 2055 form. Is this correct?

 

[Michael Tipton]

I took 1.3B IFA Mobile Manufactured Homes CE course 07/2004, instructor was Monica Trotter, IFA.

Page 5 of the textbook first paragraph ...In 1976 HUD adopted the "Manufactured Home Construction and Safety Standards", referred to as the HUD Code. This code sets minimal performance standards for roof support strength, mechanical equipment, thermal performance, safety, and other construction details that increased the quality of mobile units nationwide. The HUD Code went into effect June 15, 1976.

In 1975 the Mobile Home Manufactureres Association (MHMA), formerly known as Trailer Coach Manufacturers Association, changed its name to the Manufactured Housing Institute (MHI) and began calling its products "manufactured" instead of "mobile".

Manufactured Home Defined

A manufactured home is a single-family house constructed entirely in a controlled factory enviroment, built to federal manufactured Home Construction and Safety Standards (HUD Code).

Pg 58 in course textbook- Fannie Mae 03/06 Announcement

Definition of a Manufactured Home

Any dwelling unit built on a permanent chassis and attachd to a permanent foundation system is a "manufactured home" for purposes of Fannie Mae's guidelines. Other factory-built housing (not built on a permanent chassis), such as modular, prefabricated, panelized, or sectional housing, is not considered manufactured housing and continues to be eligible under guidelines stated in the Selllers Guide.

Based on my CE course, it meets FNMA's definition of a Manufactured Home, however, it is not eligilbe for purchase as it was built prior to the HUD Code date, June 15, 1976.

 

[Jo Ann Meyer Stratton]

Manufactured homes are constructed after June 15, 1976 to the HUD building code. Mobile homes were constructed prior to June 15, 1976 and may or may not have been constructed to a voluntary code.

Only a few lenders will make a loan on a mobile home and the forms were designed by Fannie Mae, Freddie Mac, etc for manufactured homes only--so the question on the forms asks if the property is a manufactured home.

However, there are scattered lenders out there that do make loans on mobile homes and the forms available are the 2055/1004--so in that situation a mobile home would be checked as a manufactured home on those forms. Then very clear statements all through the form and addendums that the subject property is a mobile home constructed prior to the date that the HUD building code went into effect, the home was not constructed to the HUD building code and may or may not have been constructed to a voluntary building code. And the home will not be eligible for a loan to be purchased by Fannie Mae, Freddie Mac or FHA insurance.

As the saying goes, an appraisal can be written on a cocktail napkin as long as it is in compliance with USPAP. In this case the "cocktail napkin" is a form developed for loans to be sold on the secondary market but being used for an in house or portfolio loan. So to remain in compliance with USPAP--additional commentary is necessary.

And your subject would not be a modular home!!! Modular homes are constructed to the applicable local site built building code. Mobile homes were not constructed to any site built building codes.

Have you explained to your client the home will not be eligible for Fannie Mae, Freddie Mac or FHA?

 

[Thomas J Kirchmeyer]

Jo Ann, I know it's not a Modular that's what the client asked me. All your info makes sense. I am waiting for my client to call me back to discuss this property. Thank you.

 

[Otis Key]

Thomas, what I have done in the past when I had to do one of the old "wobbly boxes" was to fill that question section with ********* and then later on make a BOLD & PROMINENT declaration about what I have actually observed, noted and appraised!

Disclose all that you can and all that you know!

 

[CANative]

In the little box, I put in the term "Pre-HUD MH." I have adequate comments throughout the report to make it clear to any reader what the improvements are and are not.

 

[Mike Garrett RAA]

Use of the abbreviation MH could be misleading. What does it stand for? Mobile Home or Manufactured Home?