Underwriter new to FHA

[OSU Beavers]

I have an underwriter that is new to FHA who wants to know if the appraisal or the value is "subject to" the HUD required tie downs on a manufactured home report.

I probably over thinking this, but if this were a conventional construction home with a HUD repair requirement of "cure minor interior peeling paint" then it would be worth the same if it were not an FHA report. However since there are no other alternative lending outlets for manufactured homes, those not being able to finance 97% FHA may be worth less than those with the required tie downs. Cost to cure would be approximately $1000 for tie down installation and the engineer’s certificate.

Does that sound reasonable?

 

[Mike Boyd]

If the engineer's certificate states that the tie downs would meet lateral wind load requirements it might be ok. However, for FHA they would have to get the system itself, approved by HUD. You also need to demonstrate that they pay real property taxes and have a permit issued by the local building department.

 

[Tim Hicks (Texas)]

All FHA appraisals for manufactured homes are "subject to" a HUD approved foundation inspection and/or required foundation retrofit repairs. There is no "as is" value as it is a HUD requirement to get the loan. At least in this area/

 

[OSU Beavers]

I think what they are wanting me to change the report to "As-is" once they have the foundation cert, wrong.

Tim are you saying that FHA appraisals for manufactured homes are automatically "subject to" a HUD approved foundation inspection? So if there are no other repair requirements are you to mark "as-is" and let the DU take care of the foundation cert? That's not how I learned it.

 

[OSU Beavers]

OK looks like they are telling me to just only state that "the appraisal is subject to an foundation cert" and they will send me a copy of it when it is all finished, instead of "The indicated value from the Sales Comparison approach and the final estimate of the subject's market value is $****** "subject" to adding tie-downs and the HUD required Engineering Certificate for the foundation." which I have in the report now.

 

[Tim Hicks (Texas)]

OK looks like they are telling me to just only state that "the appraisal is subject to an foundation cert" and they will send me a copy of it when it is all finished, instead of "The indicated value from the Sales Comparison approach and the final estimate of the subject's market value is $****** "subject" to adding tie-downs and the HUD required Engineering Certificate for the foundation." which I have in the report now.

subject to a foundation certification and let the DU handle it. You don't need to re-inspect. Are you an engineer? How would you know it meets requirements?

 

[OSU Beavers]

Just an interesting note, I have a Engineering Certificate in hand for the foundation of a manufactured home (a different one) that has no tie downs. Skippy engineer?

 

[rcsone]

......each foundation requirement is individual property locationally specific....rs

 

[Mr Rex]

Just an interesting note, I have a Engineering Certificate in hand for the foundation of a manufactured home (a different one) that has no tie downs. Skippy engineer?

If you want to see if it complies, the Permanent Foundation Guide is 384 pages:http://www.huduser.org/publications/destech/permfound.html

 

[OSU Beavers]

I am not an engineer, but I have eyes and can see if there are metal straps to tie down the home.

HUD Handbook 4150.2 states "Existing manufactured homes in place over one year are to be inspected by the appraiser for evidence of permanent concrete footings with tie-downs anchored to the footings."