4150.1 REV-1

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CHAPTER 10. MANUFACTURED (MOBILE) HOMES

SECTION I - TITLE I MORTGAGE INSURANCE

10-1. GENERAL. HUD\'s terminology for Mobile home has been changed to

\"Manufactured Home\" but does not include Modular construction which

is also a factory built home but is treated the same as stick-built

housing, even though it too contains a manufacturer\'s label.

Appraisals of manufactured home lots are the responsibility of fee

panel appraisers. Under Title I, the manufactured home units

themselves are not appraised in the field.

10-2. MANUFACTURED HOME LOT APPRAISALS - A lot appraisal may be
requested

to establish value for determining the maximum loan proceeds

allowable for a manufactured home lot loan or a combination loan

(home and lot). A lot appraisal may also be requested in order to

establish a value for claim purposes on a foreclosed lot or

home-and-lot combination.

10-3. MANUFACTURED HOME LOTS - A manufactured home lot may consist of

platted or unplatted land, a lot in a recorded or unrecorded

subdivision (including a planned unit development), or an improved

area of such subdivision. A manufactured home lot may also consist

of an interest in a manufactured home condominium project (including

an undivided interest in the common areas) or a share in a

cooperative association which owns and operates a manufactured home

park. The lot may be located within Indian trust lands if the

borrower owns the lot.

10-4. INDIVIDUAL LOT ACCEPTABILITY. HUD requires the lender to obtain

certifications by the appropriate government officials that the

individual lot offered for sale meets the following criteria:

A. The lot complies with local zoning ordinances and regulations.

However, the absence of zoning requirements shall not in itself

necessitate rejection.

B. Adequate vehicular access from a public right-of-the-way is

available to the lot.

C. Adequate water supply and sewage disposal facilities are either

available to or on the lot. The lot shall be served by adequate

public or community water and sewage systems, unless appropriate

local officials certify that either or both systems are

unavailable to provide an adequate level of service to the

manufactured homesite. If either or both such systems are not

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10-1

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(10-4) available, the lot shall comply with local or State minimum lot

area requirements for the provision of on-site water supply

and/sewage disposal.

(10-4) D. Any other minimum local standards and requirements for site

suitability are met. Where minimum local standards for water

supply and sewage disposal are not established or enforced, the

lender shall obtain a certification from a registered civil

engineer that the lot meets minimum standards for water supply

and sewage disposal as prescribed by the Secretary.

E. The site must have adequate electric service; gas service is

optional.

F. The requirement: \"Anchoring devices shall be installed as

recommended for the hazard zone of the site and the manufactured

home being placed thereon,\" shall be placed on each Statement of

Appraised Value, Form HUD-92801A.

G. A final inspection shall be made by the original appraiser on

all lots requiring site preparation in order to insure

compliance with requirements set forth in the Statement of

Appraised Value, Form HUD-92801A. Final Inspection Reports

shall be issued when site preparations are acceptably completed.

H. No manufactured home loan shall be eligible for insurance if the

property securing repayment of the loan is located in an area

that has been identified by the Federal Emergency Management

Agency (FEMA) as having special flood hazards, unless the

community in which the area is situated is participating in the

National Flood Insurance Program, and flood insurance on the

property is obtained by the borrower in compliance with section

102(a) of the Flood Disaster Protection Act of 1973 (42 USC

4012(a)). The amount of such insurance need not exceed the

unpaid balance of the loan, but the insurance shall be

maintained by the borrower and a current policy retained by the

lender for the full term of the loan or until the property is

repossessed or foreclosed by the lender, and the lender shall be

named as a loss payee of insurance benefits.

10-5. PROCESSING INDIVIDUAL LOT APPLICATIONS. Manufactured home lot

appraisals shall be processed within the same five-day time frame

established for other appraisals

A. When the Field Office assignment clerk receives a request for a

case number and the name of an appraiser, a special case number

is assigned to identify manufactured home lot appraisals. The

three digit numbering code used to identify a state and Field

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10-2

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4150.1 REV-1

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(10-5) Office shall be used as the prefix number, followed by a four

digit number to identify the file sequence (example: 201-0001).

Each Field Office shall begin the series with the four digit

numbering system beginning with 0001.

B. The mortgagee must forward the Form HUD-92801, Application and

Request for Manufactured Home Lot and/or Site Preparation, and

instructions, to the appraiser. (See pages 10-4a and b.)

C. When determining the estimate of value for the lot, the

appraisal shall be made by comparison with other lots offering

similar amenities.

D. Upon completion, the appraiser shall send the original and one

copy of the appraisal report, a snapshot of the lot and one of

each comparable to the Field Office for review.

E. The reviewer shall check for information relative to flooding,

subsidence, zoning, or other location deficiencies from data

available in the office, and note any adverse influences in the

file, or determine that the site is a preliminary reject from

information already contained in the office.

F. After completing the review, the review appraiser shall complete

the Statement of Appraised Value, Manufactured Home Lot and/or

Site Preparation, Form HUD-92801-A, and sign as \"Authorized

Agent.\" The completed Statement of Appraised Value will be

mailed to the lender, and a copy retained in the binder. (See

page 10-4c.)

G. A conditional commitment shall not be issued when processing

manufactured home lot appraisals.

H. The case binder with the original application and supporting

documents shall be filed numerically in a file separate from the

regularly processed cases and retained for a period of at least

three years.

10-6. UNDEVELOPED LOT. Only those improvements which are necessary to

make the lot suitable for placement of a manufactured home may be

financed (i.e., concrete pad, permanent foundation, appropriate

driveway, provision for anchoring, on-lot water and utility

connections, sanitary facilities, lot improvements and landscaping).

Excluded are items such as swimming or wading pools, barbecue pits

and other ancillary facilities. Costs of necessary improvements

will be arrived at by the appraiser on the basis of costs set forth

in either a contract or proposal from the builder, together with a

complete itemization of materials and labor.

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4150.1 REV-1

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10-7. PROPOSED MANUFACTURED HOME SUBDIVISION CRITERIA. Proposed

manufactured home subdivisions for individual site ownership must

meet the minimum criteria established in Handbook 4940.5, Minimum

Design Standards for Manufactured Home Parks. A subdivision plat

and protective covenants approved by the local authorities are

required. Evidence shall be submitted that the streets and

drainage, water supply and sanitary sewage systems have been

accepted for continuous maintenance by the local authority that

has jurisdiction.

10-8. PROCESSING THE SUBDIVISION APPLICATION. Processing shall be in

accordance with outstanding subdivision processing procedures in

Handbook 4135.1, Subdivision Analysis and Procedures for Home

Mortgage Insurance. Where common area charges against all lot

owners may constitute a lien, processing shall be in accordance with

PUD procedures in Handbook 4140.1, Land Planning Principles for Home

Mortgage Insurance. Lot values shall be determined by using

comparable manufactured home subdivisions offering similar amenities

where available. Included in the value of the site are all realty

items such as the pad, driveway, utilities, and provisions for

anchoring. Where lot values must be estimated from data involving

non-manufactured home sites, the value will be adjusted for the

realty items common to the manufactured home site but not included

in the non-manufactured site. Manufactured home subdivision

feasibility applications shall be processed under the same

procedures required for subdivisions with respect to Affirmative

Marketing Plan requirements. Environmental considerations and

clearance requirements shall be processed in accordance with Chapter

8 of Handbook 4010.1, Definitions, Policy Statement, and General

Rulings.

10-9. PROCESSING FORECLOSED MANUFACTURED HOME SITES. When a manufactured

home site appraisal is required after foreclosure, the same case

number will be used that was assigned to the initial site appraisal.

The appraisal shall be processed within the same five day time frame

established for existing properties. A field inspection is

mandatory.

10-10. MANUFACTURED HOME LOT APPRAISAL REPORT. The appraiser will
complete

Forms HUD-92801, Application and Request for Manufactured Home Lot

and Site Preparation Appraisal, when making an appraisal on a

foreclosed lot. The completed appraisal report will be reviewed for

accuracy and completeness. The review appraiser will prepare and

sign the Statement of Appraised Value (Form HUD-92801A) as

authorized agent, forward the original to the lender and retain a

copy in the file.

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APPLICATION FOR MANUFACTURED HOME

LOT AND SITE PREPARATION APPRAISAL

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4150.1 REV-1

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SECTION 2. TITLE II MORTGAGE INSURANCE

10-11. ELIGIBILITY: PROPOSED CONSTRUCTION.

A. To be eligible for FHA mortgage insurance under Title II, a

property with a manufactured (mobile) home must comply with

requirements set forth in HUD Handbook 4145.1, Chapter 3.

B. APPRAISAL: EXISTING CONSTRUCTION.

1\) Appraisers should use normal single family residential

appraisal techniques when appraising manufactured housing.

Other factory built housing may provide the most similar

comparables so every effort should be made to obtain such

comparables even though their distance from the subject may

be greater than normally desirable. In situations where

there is no other factory built housing within a reasonable

distance from the subject property, conventionally built

homes may be used with appropriate adjustments made for

size, location, construction materials, quality, etc. Sales

data for manufactured homes can usually be found in local

transactions records.

2\) For proposed construction, Marshall and Swift cost data may

be used as a guide.

3\) It will be the appraiser\'s responsibility to confirm that

the manufactured home under appraisal meets requirements for

acceptance of manufactured housing as evidenced by an

affixed certification label.

4\) Since manufactured housing is usually located in outlying

areas, the appraiser must also determine the market

acceptability of the property, which should be noted in the

appraisal report and reflected in the appraised value.

D. Inspection.

1\) Fee appraisers making appraisals or inspections of existing

manufactured homes may have difficulty in determining

compliance with the requirements in HUD Handbook 4145.1:

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(10-11) a. In some cases, a visual inspection will be adequate to

determine compliance. In other cases, it may be

practical to examine the builder\'s site and foundation

plans and Description of Materials and then determine

from visual inspection whether the construction appears

to be in compliance and secure a certification of

compliance from the builder.

b\. During appraisals and inspections, it will generally be

infeasible to determine whether a proposed unit or an

existing unit permanently erected on a site for less

than one year prior to the date of application for

mortgage insurance was properly stiffened and braced

during transportation. Appraisers and inspectors

should examine dwellings to assure that there is no

obvious damage or loosening of fastenings that may have

occurred during transportation. For proposed

construction, the builder must warrant the property

against such damage, which should protect the Federal

interest.

c\. Lot evaluation determinations related to potential

flooding shall be based upon information shown on

National Flood Insurance Program Flood Insurance Rate

Maps, where available. In all other cases, they should

be based upon recommendations of the Regional Civil

Engineering staff.

d\. The builder of the manufactured home property, for

proposed construction, shall submit with the

application for insured financing design calculations,

details and drawings for the installation, anchorage

and construction of the permanent foundation as set

forth in HUD Handbook 4930.3 certified by a

professional, licensed engineer. Also, the perimeter

enclosure to be used should be included (See HUD

Handbook 4145.1).

E. VA-CRV\'S. Because the Department of Veterans Affairs accepts

manufactured housing regardless of age or prior occupancy or

other HUD eligibility requirements, CRV\'s are not acceptable for

conversion to HUD commitments for insurance.

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