The following information was taken in-part from the HUD appraisers handbook
2150.2 appendix D to provide the 2006 field requirements when inspecting a
manufactured home for an FHA mortgage product.
D-2 Manufactured Home Appraisal Report
This section provides specific instructions for completing the Manufactured Home
Appraisal Report (Fannie Mae Form 1004C March 2005).
A manufactured home is designed and
constructed to the Federal Manufactured Home Construction and Safety Standards (MHCSS)
as evidenced by an affixed certification label. Manufactured homes may
also be referred to as mobile homes, sectionals, multi-sectionals, double-wides,
triple-wides or single wides. Modular housing is built to the local/state
codes and is not to be considered manufactured housing. When erected on
site, to be eligible for FHA insurance the manufactured home is:
* Built on or after June 15, 1976 based on MHCSS,
* At least 400 square feet in gross living area,
* Built and remains on a permanent chassis,
* Designed to be used as a dwelling with a permanent foundation
which is designed and constructed to HUD/FHA criteria and,
* Have a HUD Certification Label/Seal affixed to the exterior of the home.
Section 5 - HUD Data Plate
The Federal Manufactured Home Construction and Safety Standards, Part 24 of the
Code of Federal Regulations (CFR) 3280, requires that "each manufactured home
shall bear a data plate affixed in a permanent manner near the main electrical
panel or other readily accessible or visible location." Typically, the HUD
Data Plate is adjacent to the electric service panel, the utility room or within
a cabinet in the kitchen. Over time, homeowners often remove this sheet
and it is common for the data plate to be missing from a
manufactured home.
Copies of the data plate are generally available only from the manufacturer of
the home or the in-plant inspection agency responsible for inspecting the home
prior to its shipment from the manufacturing plant. If the data plate is
missing, locating a replacement or the specific data plate information from the
manufacturer or in-plant inspection agency may be impractical or expensive.
Some manufacturers are no longer in business or the in-plant
inspection agency may no longer have the information.
The HUD Data Plate (Manufacturer's Data Plate) provides information on:
1. Name and address of the manufacturing plant where the home was
constructed;
2. Serial number, model designation and date of manufacture (date the
certification label was applied to the home).
3. Compliance statement;
4. List of certification label(s) number(s);
5. List of major factory installed equipment, and
6. Roof zone and wind zone maps designating the zones for which the home has
been constructed.
The Certification Label (aka HUD Seal):
This is a 2 inch by 4 inch aluminum plate, permanently attached to
the home, located at one end of each section of the home, approximately one foot
up from the floor and one foot in from the road side, or as near that location
on a permanent part of the exterior of the home as practicable. This
Certification Label is often referred to as the HUD Label, or the HUD Tag.
Etched on the Certification Label is the Certification Label Number, also
referred to as the HUD Label Number. Label numbers are not required to be
sequential on multi-section homes.
Verifications of the Certification Label Numbers are available from the
manufacturer, the in-plant inspection agency, and HUD, sometimes at-cost.
Contacts for the in-plant inspection agencies are available on HUD's
manufactured housing website. Information on requesting these
verifications is available at the website for the manufactured housing program
at;
http://www.hud.gov/offices/hsg/sfh/mhs/mhslabels.cfm.
Wood boring insects: Examine
the subject property for readily observable evidence of wood boring insects.
* Do not require a pest inspection based solely on the age of a property.
Inspections are necessary whenever there is evidence of decay, pest
infestation, suspicious damage or when it is customary to the area or
required by state law.
Skirting: If the manufactured home
features skirting placed between the bottom of the home and the grade of the
supporting ground, indicate the material type of the skirting. Note that
FHA requires a properly enclosed crawl space (if crawl area with no basement)
with a continuous perimeter enclosure of a permanent foundation-type
construction i.e., poured concrete, block, brick,
stone, treated wood, etc.) and rate the observed condition.
* If the manufactured home has a crawl space and lacks a continuous
perimeter enclosure of a permanent nature, note and highlight this absence.
Note whether enclosed crawl area has adequate access and ventilation.
Roof surface: Enter the
material type: composition shingle, asphalt shingle, wood, slate, clay tile,
aluminum, built-up, etc. and rate the observed condition.
* View the roof from ground level to determine if the integrity of the roof
is sufficient.
* Observe roof coverings, roof drainage systems, flashing, skylights, or
chimneys for readily observable evidence of leakage or abnormal
condensation on building components.
* Note any evidence of deterioration of roofing materials (missing tiles,
shingles, flashing). Deteriorated roofing materials include those that are
worn, cupped, or curled.
* If the roof is otherwise unobservable, look for telltale signs of roof
problems on the interior, such as damage or water stains to the ceiling area of
a room or closet.
Unacceptable Locations: FHA
guidelines require that a site be rejected if the property being appraised is
subject to hazards, environmental contaminants, noxious odors, offensive sights
or excessive noises to the point of endangering the physical
improvements or affecting the livability of the property, its marketability, or
the health and safety of its occupants. Rejection may also be appropriate
if the future economic life of the property is shortened by obvious and
compelling pressure to a higher use, making a long-term mortgage impractical.
Cosmetic repairs: Cosmetic
repairs are not required; however, they are to be considered in the overall
condition rating and valuation of the property. Examples of cosmetic
repairs would include surface treatments, beautification or adornment not
required for the preservation of the property. For example, generally,
worn floor finishes or carpeting, holes in window screens, or a small crack in a
windowpane are examples of deferred maintenance that do not rise to the level of
a required repair but must be reported by the appraiser.
Require further inspections: Typical
conditions that would require further inspection or testing by qualified
individuals or entities:
* infestation - evidence of termites
* inoperative or inadequate plumbing, heating or electrical systems
* structural failure in framing members
* leaking or worn-out roofs
* cracked masonry or foundation damage
* drainage problems
Security bars: Bedroom
windows with security bars require a quick release mechanism for emergency
egress. If not so equipped, condition the appraisal on a "required
repair".
Square footage: To be
eligible for FHA financing, a manufactured home must have a gross living area of
no less than 400 square feet.
Permanent Foundation System:
To be eligible for a FHA-insured financing, the design of the permanent
foundation must be in compliance with FHA criteria as evidenced by an engineer's
certification verifying such compliance.
* The appraiser should indicate if a copy of the required engineer's
certification of compliance of the design of the permanent foundation was
provided.
Towing gear (hitch, wheels, axels):
The appraiser must inspect the underside of the manufactured home
and determine if the towing hitch, running gear (wheels and axels) have been
removed. If not removed, or unable to determine due to lack of access, the
manufactured home is not eligible for FHA-insured
financing and the lender must be notified.
Public utilities: Indicate
whether the manufactured home is
permanently connected to public water and sewer or well and septic and other
utilities.
* If "no" is marked, the manufactured home is not eligible for FHA-insured
financing and the appraiser must notify the lender.
Individual Water Supply and Sewage Systems:
Identify the type of utilities in the site section of the
appraisal report. When water and sewer are private, well and septic
testing is to be governed by
state or local requirements; however, the appraiser must note any readily
observable deficiencies regarding the well or septic system. The appraiser
is also required to report on the availability of connection to public and/or
community water/sewer systems. The lender is responsible for the
determination of the feasibility for requiring connection.
Private Road Access and Maintenance:
Address private road access in site area under "off-site
improvements". Private streets must be protected by permanent recorded
easements or be owned and maintained by a HOA. Shared driveways must also meet
these
requirements.
Each property must have vehicular or pedestrian access. ?If the property is
inaccessible by foot or by vehicle, note this deficiency. FHA defines
all-weather surface as a road surface over which emergency vehicles can pass in
all types of weather. If the property is not provided with an all-weather
surface, note the absence of such in the appraisal.
Lead-based paint: If the
manufactured home was built before 1978, this may indicate a lead paint hazard.
For all FHA insured properties, correction is required to all defective paint in
or on structures and/or property improvements built before January 1, 1978 in
accordance with 24 CFR Part 35. check for evidence of defective paint
surfaces, including: peeling, scaling or chipping paint. Provide a
detailed description and identify the exact location of any deficiency under
"physical deficiencies" affecting livability.