MANUFACTURED HOME REQUIREMENTS
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Built on or after June 15, 1976 in compliance with MHCSS
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400 square feet or larger
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Built and remains on permanent chassis
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Designed as a dwelling with permanent foundation that meets HUD/FHA criteria
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Has HUD certification label affixed to the exterior
Even with the FHA video and all that we are covering here, there are still protocols we will not cover or you will remain unsure about. Only selected protocols are covered here. There are more protocols in each section which are important and the appraiser is responsible for knowing. When in doubt, check appropriate FHA publications. As in the prior module, each section name matches the name of the section as it appears in the black vertical bar on the left side of the appraisal report, in this case, the manufactured home appraisal report form. The section number is the number from the 4150.2 Appendix D
CONTRACT
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Analyze contract of sale
The same expectations as for the URAR. Remember, if you are unable to obtain the information which you are required to provide, then you should state what efforts were made to obtain the contract.
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Contract Price
For resales, this is generally straightforward and little different than for a “stick” built house. However, when the manufactured home is new, be sure the contract price includes costs of delivery, installation and setup.
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Manufacturer’s Invoice
Required only if the subject is a new house. If it is not available, then it is not available.
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Summarize analysis of invoice
Be sure to summarize your analysis of the purchase details and any other documentation you receive.
FEMA Special Flood Hazard Area
“To be eligible for FHA-insurance, the finished grade level beneath a manufactured home must be at or above the 100-year return frequency elevation.” When it comes to flooding hazards, the standard for acceptance for FHA insurance is greater for a manufactured home than for a conventionally built house. The lender is to obtain an Elevation Certificate if the site is within a FEMA specified flood hazard area. If the subject’s site is in a flood area, be sure to include a copy of the map as an exhibit in your appraisal report.
HUD DATA PLATE
“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.” This is mandated by the Federal Manufactured Home Construction and Safety Standards 24 CFR 3280. The data plate can typically be found near a service panel, in the utility room, or in a kitchen cabinet. In practice it seems the HUD data plate can be about anywhere. The master bedroom closet is a good bet.
The HUD data plate has information which can make your appraisal of the subject more direct. You can find the serial number on the data plate. You are supposed to report the serial number in your appraisal report. The data plate includes:
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Name and address of plant where the section was constructed
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Serial number, model designation, date of manufacture
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Compliance statement
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List for certification numbers
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List of major factory installed equipment
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Roof zone and wind load map
It is important to know that if the data plate is missing, the appraiser need only report it is missing. Manufacturer’s serial number or VIN number is stamped on the foremost cross member of the supporting frame of the hitch end.
It may be helpful to take a photograph of the HUD data plate to retain in your workfile or to include as an exhibit in your report.
Section 5 – Certification Label
CERTIFICATION LABEL
Note the Label No. matches the label number on the HUD Data Plate. This is useful to check when you are on-site.
Section 6 Certification Label
If the tags are missing, the property should be rejected, but even though HUD does not reissue Certification Labels, all may not be lost. The certification numbers may be verified from different sources including the manufacturer or the in-plant inspection agency; HUD may be able to issue a letter of label tag verification
Provided here is a copy of a January 4, 2006 response to a question submitted to the Santa Ana HOC providing direction to an appraiser who had written asking what to do when he could obtain all the information from the data plate, but was unable to find the certification label; it appeared the label had been covered.
“Response: All manufactured homes must have an affixed HUD seal(s) located on the outside of the home. If the home is a multi-wide unit, each unit must have a seal. They will be numbered sequentially. If for any reason the tags are missing, the Appraiser must recommend ‘rejecting’ the property and notify the Lender. In some states, a manufactured home may not be re-sold if missing a seal. If this is the case, the property is a reject. If this is not the case, then, the Lender may send an E-Mail to the Department’s Manufactured Housing and Standards Division Program office, at (mhs@hud.gov) and request issuance of a letter stating that the home had originally been issued a HUD label. The information, on the data plate inside the home, is not an acceptable alternative. However, the Lender/Home Owner needs to obtain the serial number(s), of the home, from the data plate found inside the home, or the serial numbers found on the front cross member, on the steel chassis under the home; and provide the serial number(s), to the Program office listed above. Additionally, the Department can more easily assist if you provide the following information: Name and Address of the Manufacturer, Date of Manufacture (Month, Day, and Year), Serial and Label Number(s) of the Home, and The Contact Person’s Name, Address, Telephone, and Fax Number. “
What follows is the link to the “Missing HUD Tags (Label)” Website.