Title I, and a manufact. home.

[Mountain Man]

Got a lender wanting to do an FHA Title I loan on a manufactured home. He asked me if it had to be an a concrete block, perimeter foundation. I said that I thought so, most homes in this area are, but let me look. The only thing I can find on HUD's web site is.

"Be installed on a homesite that meets established local standards for site suitability and has adequate water supply and sewage disposal facilities available."

Which leads me to believe that it is pretty much what ever is acceptable in the market, subject to local ordinances. This county does not have any inspection's dept., enforcement of building codes, or zoning. It is a true buyer beware market.

Anyone else know where I could find more info? Other than having an engineer sign off on the piers, straps, etc., what am I missing?

 

[Pamela Crowley (Florida)]

You need an engineer's approval on the foundation plan and a FHA Compliance Inspector to approve the finished foundation. The appraiser does not make any determinations regarding the acceptability of the foundation.

 

[rtubbs]

M Leggett, you might want to check out the following link:

http://www.HUD.gov/progdesc/manuf14.cfm

 

[Jo Ann Meyer Stratton]

Per the Permanent Foundations Guide for Manufactured Housing the permanent foundation and the perimeter enclosure (if non-bearing or skirt walls) are to be consructed of durable materials; i.e. concrete, mortared masonry, or treated wood and be site built. It shall have attachment points to tranfer all loads, herin defined, to the underlying soil or rock. Anchorage does not refer to any type of soil anchor. Pages 1-1 and 102-

Per Homeownership Center Reference Guide: 1-09-D. Foundation Compliance, 1. All foundation systems, new and existing, must meet the guidelines published in the Permanent Foundations Guide for Manufactured Housing, HUD-7584, date September 1996. A certification attesting to compliance with this handbook must be obtained from a licensed professional engineer and included in the insuring file. 2.---The foundation design in HUD Handbook 4930.3--may be used to verify the design the existing system. Provid a licensed profession engineer's certification to verify compliance with the handbook guidelines and with the requirements set forth in paragrpah 3-4B.

In other words a professional engineer (not a fee inspector) is the one that has to crawl around underneath that unit and certify that the foundation that was installed on site for that specific unit does meet the PFGMH requirements. A structural engineer does design several foundations for each unit, one of which the installer or owner chooses--but that structural engineer that does the design does not see the actual installation or if it is in compliance with the PFGMH.

So as an appraiser, that would be a condition on the VC sheet for every manufactured home, new or resales. If the original financing was FHA, there should be an engineer's inspection/certification somewhere in somebody's paperwork, because this procedure does not apply when the current FHA borrower refinances their loan.

The appraiser arrives at an opinion of value. The underwriter has the responsibility of contracting for a professional engineer to determine if the foundation and perimeter enclosure meets HUDs requirements.

 

[Jo Ann Meyer Stratton]

Some additional notes. The original and existing foundation/enclosure system might not meet HUD requirements but they can be retrofitted to HUD requirements. Describe what exists and since your condition on the VC sheet will be for a professional engineer to inspect and certify, it will be the underwriter's responsibility to accomplish that without any involvement from you. Your value would be subject to the foundation / enclosure meeting HUD requirements. If they don't retrofit-- then your value is not applicable because your condition was not met.

 

[Mountain Man]

Some additional notes. The original and existing foundation/enclosure system might not meet HUD requirements but they can be retrofitted to HUD requirements.

I think that is going to be the problem. It just sounded like the LO was trying to nitpick and twist words. I told them that it has to be permanent foundation, certified by an engineer, but didn't know where on the HUD web site to find the info, he wants to read it for himself. I believe it has vinyl skirting, have not seen it yet, but they want to try and get around spending the $$ for an engineer.

Thanks.

 

[Jo Ann Meyer Stratton]

National Homeownershp Center Reference Guide
Chapter One Appraisal and Property Requirements
1-09 Manufactured Homes

The entire 09 section.

Also if the HUD label (red insignia) has been removed or is covered up, the appraiser has to dig out as much information as possible--the data plate with the map of the USA inside of the home is the best source. Photograph and write down all the information you can find about the serial number, year, make, model, manufacturer, plant, etc. Then the underwriter has to go to work and determine if the unit was constructed to HUD building code. The underwriter will need the serial number to cross check for the HUD label numbers. Another condition on the VC sheet--underwriter to verify that the home was constructed to the June 15, 1976 HUD building code. The appraiser does not reject the property--the underwriter makes that determination.

 

[Mountain Man]

Thanks for the info. I should've known (and really did know the answer). But they just posed a thinking question to me today when I am sick, down in the dumps, and dopped up high as a kite trying to get better. They shoulda known better than to ax me today. :lol:

 

[Jo Ann Meyer Stratton]

Another note. Although the reference guide says to reject the property. The only practical approach is to do the field work, call the client with the information you have found, by then you are so deep into the assignment, you need to go ahead and write up the report with all the info you can find out and submit it to the client. Then their underwriter has to go to work and decide whether it is a reject or they can do the verification.

 

[rtubbs]

M Leggett

I gave you the wrong link; try this one:

http://www.HUD.gov/offices/hsg/sfh/ref/sfhp1-9g.cfm

I didn't spend a lot of time on it but from what I gather, Title I appraisals are to be the NADA type which most of us are not qualified to do.