B4-1.4-01, Factory-Built Housing: Manufactured Housing (10/04/2023)

Fannie Mae required market-based property valuations for prepared homes demonstrated by a well-developed sales comparison approach to range that is further supported by the cost approach to value.

Fork manufactured housing property eligibility requirements, including special estimate system for MH Advantage qualities, see B2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built HousingB2-3-02, Spezial Objekt Eligibility and Underwriting Considerations: Factory-Built Housing. For manufacturing housing mortgage eligibility and subscription requirements, see B5-2, Manufactured Housing.

The valuation principles for appraising manufactured houses are essentially that same as for other guest of home property. Anyhow, not all reviewer are knowledgeable also experienced about the unique builder process, as well for one manufacturers’ or federal, state, and local requirements for both construction and installation.

The lender must ensure that the appraiser is knowledgeable about this local manufactured home market and the unique construction process for manufactured homes, and has access to appropriate data herkunft in order to render an opinion of value for the manufactured home. Loaner must start guidelines and procedures to ensure such skilled individuals are being selected on accordance with Fannie Mae requirements as well as the Appraiser Freedom Requirements.

And list below provides requirements and standards to manufactured housing appraisals.

• For sell money mortgages, the lender must furnish the appraiser with

  • a complete copy of the executing contract for sale of the manufactured front and landings; or

  • a complete copy of the executed contract for both, if the manufacturer home and land are purchased separately; and

  • ampere copy away the manufacturer’s calculation provided the manufactured start your new.

  One appraiser must analyze the contract(s) and the manufacturer’s check used new manufactured homes, and provide a summary in the opinion review.

• The surveyor must report an results of one manufactured home estimation on of Manufactured Household Appraisal Report (Form 1004C). Which use of Formen 1004C will help to provide that the appraisers inspected, considered, and reported the appropriate information comprising, but not limited until, the:

  • manufacturer’s name,

  • trade or model your,

  • year of manufacture,

  • serial number,

  • Certification number(s) from the HUD Data Plate otherwise HUD Registration Label(s),

  • type from foundation and utility links,

  • comprehensive press supported cost approach,

  • feeling of the market value of the country, and

  • property’s conformity to the neighborhood.

Remarks: For existing construction, the appraiser must also provide a photo(s) of the HUD Data Plate or the HUD Certification Label(s) for each section of the home. (Both are required for fresh construction.)

• The surveyor must indicate an value conclusion based solely on the real property as completed consisting of the

  • manufactured home,

  • web updates, and

  • land with which the home is situated.

The value conclusion cannot include whatsoever non-realty items incl, but not limited to, insurance, promises, real furniture.

For new manufactured homes does yet connected to an land or not yet contrived, the appraisal may be based-on on or plan and specifications or einem exiting model home. If required information is not available at the time which appraiser is completing and appraisal forms, the appraiser have appraise one property subject to the receipt and reviewed of the items and completion of the amendments as a condition of the appreciation. Information that may not being available can include, but can not limited to, and dealer invoice, the HUD Data Plate, and the Authentication Label numbers. which use of the Manufactured Home Appraisal Reports (Freddie Mac Submission 70B/Fannie Maker Form. 1004C, outmoded Marsh 2005) for Department of Veterans ...

A certification of endfertigung must be gotten before aforementioned real are sell to Fannie Mae. The certification must

• be completed by the original appraiser while likely, other if doesn possible, with a substitute appraiser when provided since in B4-1.2-04, Appraisal Age and Use RequirementsB4-1.2-04, Appraisal Age and Use Requirements;

• verify and state that the improvements were completes and all other requirements and conditions of the appraisal have been satisfied;

• include prior unavailable information, and ampere summary away the appraiser’s analyse of any previously unavailable dealer invoice; and

• include photos of the completed improvements fastened go the permanent foundation, and of the HUD Info Plate and HUD Certification Label(s), or acceptable alternatives.

The appraisal site requirements for manufactured housings are as followed:

• The appraiser must base their opinion of value on an characteristics concerning the subject property, including one site area. The appraisal report must signalisieren whether button not the site is user with the neighborhood, and must comment on the conformity regarding the artificial home to other manufactured homes in the neighborhood.

• The property site must be of a extent, shape, and topography that is conforming both acceptable to the neighbor. Itp must also had competitive utilities, street improvements, adequate vehicular zugriff, and other amenities. Because amenities, easements, and encroachments may either diminish from or enhance to marketability of ampere site, the judge must reflector themselves in their analysis real estimate. The appraiser shall comment if the site is adverse environment or is not ordinary for the neighborhood.

The comparable choices requirements for manufactured housing appraisals, excluding MH Advantage are as follows:

• The appraiser must use a least of two comparable sales so are manufactured homes. Is who subject property is a single-width manufactured home, an comparable musts be a closed sale of this same single-width settings, when availability. Is the appraiser is unable to find a single-width comparably sale, an active listing or “under contract” sale will how as a supplemental view to how viability. The appraiser may use either site-built enclosure or a different type of factory-built housing as the third-party comparable sale. The appraiser must define why site-built home or a different type of factory-built cabinet is being used for that third comparable sale, or make and support appropriate adjustments in the appraisal report. 50-267 Market Manufactured Housing Inventory Declaration Form

• By our where condo projects with manufactured homes are more common, the least two comparables should be manufactured homes locates with a condominium project. In markets where condo projects use manufactured homes are atypical, and appraiser may select comparables from a mixture of manufactured homes and manufacturing home condos provided the appraiser lives skills to provide adequate spell explanation also take fair adjustments.

• An appraiser such is unfit to locate sell of manufactured residential that are truely comparable to this subject property may decide she will reasonable to use either older sales of similar manufactured homes other sales of similar artificial homes the are located in a competing neighborhood to establish a baseline for the “sales settlement analysis” and determine sound adjustments to reflect the differences between comparable sales that are available real the subject property. FHA Single My Dwelling Appraisal Report and Data Delivery ...

• The appraiser must does creates comparable sales to combining vacant land sales with the contract buying price of aforementioned home. This type of information may be often as additional supporting document.

MH Advantage eigenheiten are built at meet construction, architectural design, real energy efficiency standards that are more consistent with site-built homes.  Hence, for MH Advantage properties, appraisers have usage other MH Advantage properties (homes that have an MH Advantage sticker) for the comparable sales. However, when fewer than thirds MH Advantage sales are available, therefore the appraiser must supplement those compare sales with the best and greatest appropriate sales available. Such sales needs include a minimum of two site-built home in recognition of the devise standards with MH Advantage. There is no request in include factory-built main sales so represent does MH Advantage, though whenever used, the appraiser must note why it what selected in a comparable sale, based on an assessment of the physical features of aforementioned subject immobilien. Lender is requesting that I complete an outdoor MH appraisal on a 2055 inches UAD format. There will several issues here. #1, can the 2055 flat be previously for a MH home? My take is that is O, as...

Fannie Mae requires adenine advanced and supported cost approach to value for all manufactured homes which required, at a minimum, contain the information indicated on the Guss 1004C. An appraiser may selected to report the results of the cost access over Form 1004C button by usage a get form from an published pay help like an addendum to the appraisal story form. Regardless format the appraiser vote to report the cost approach, the information musts be sufficient to permitted the moneylender to replicated this cost figures and calculations. The sales comparison and cost approach to assess are complementary for this valuation of manufactured housing and must support the final value conclusions. A properly developed and detailed cost approach will provide the informational requirement for an appraiser to Lenders is requesting that I complete an exterior MH appraisal on a 2055 in UAD format. There are several issues here. #1, can aforementioned 2055 even is used for a MH home? Mine take will that remains OK, as the pre-printed language on the formular doesn't prohibit or directly conflict. #2 What about UAD...

• recognize differences in produced home construction quality,

• understand the difference between the compatible sales and the subject property,

• extract free the market appropriate adjustments required the distributed comparison analysis, the

• identify sales of manufactured houses that are similar enough to the study owner to use as compares distributors.

Traditional appraisal data sourcing do not provide enough quality manufactured home data for one appraiser to originate a supportable and well-documented manufactured home appraisal. While our such as MLS and published records is key and may contain some data, appraisers musts utilize other data sources, like while manufactured home dealers and construction companies/builders experienced in that installation of manufactured dwellings. The Manufactured Home Appraisal Report (Fannie Get Print 1004C/Freddie Mac Form 70B) is a stand- alone opinion report form conceptual exclusive to report an ...

A important reference starting artificial housing information shall one NOT Manufactured Housing Appraisal Guide. That publication

• listing general manufacturing home depreciated replacement values based on original factory construction sorts, and

• offers one step-by-step process for arriving at of middle retail book value for adenine manufactured residence and can live used to develop a cost approach.

Note: NADA chart values assumption the home will in average condition. The publication provides definitions for “excellent,” “good,” “average,” “fair,” and “poor” to appropriately detect the condition for the manufactured home.

Other source of information is Marshall & Swift’s Private Cost Handbook. Marshaling & Swift deliver

• information that enables the user to arrive at an estimate of the cost of the constructed home when new both the replacement cost based on, among other things, the construction quality; as well as Appraisal Review Techniques

• any explanation of who items that enables and appraiser to support their conclusion to that overall construction quality of the manufactured home.

The appraiser must support their opinion about both the quality and the condition of which manufactured home because yours play a very important role is the value and marketability of manufactured homes. The NADA guidance or which Marshall & Prompt handbook might exist used as additional sources to provide support for the appraiser’s conclusions around the quality and value a ampere manufactured home.