Announcement 2020-147 - FHA – Manufactured Housing Appraisals - Sales Comparison Update

Summary

Please note the following update to the 4000.1 Handbook requirements for appraisals on subject properties that are manufactured housing units constructed in conformance with Fannie Mae’s MH Advantage or Freddie Mac’s CHOICEHome programs. The following 4000.1 requirements that address the selection of sale comparisons and additional inspection requirements are effective immediately for appraisals with effective dates on or after December 22, 2020.

 

For a Manufactured Home certified based on the construction requirements of Fannie Mae's MH Advantage® or Freddie Mac's CHOICEHome® program, the appraiser must include at least two comparable sales with similar certification, when available. If less than two comparable MH Advantage® or CHOICEHome® sales are available, the appraiser may utilize other factory-built or site-built construction and must provide detailed justification to support the appraiser’s selection of comparable properties and the adjustments made for dissimilarities to the subject property.

 

A Manufactured Home certified based on the construction requirements of Fannie Mae's MH Advantage® or Freddie Mac's CHOICEHome® programs must have Fannie Mae's MH Advantage® Sticker or Freddie Mac's CHOICEHome® Label affixed near the HUD data plate. The appraiser must include photos of the Fannie Mae's MH Advantage® Manufacturer Sticker or Freddie Mac's CHOICEHome® Label in the appraisal report for the Manufactured Home to meet the documentation requirement

 

The above sale comparison guidance only pertains to subject properties that are constructed to MH Advantage or CHOICEHome standards and does not remove other FHA requirements for manufactured housing such as engineer report to certify PFGMH or be classified as real estate.

 

Resource Link

FHA Mortgagee Letter 2020-48 Manufactured Housing Appraisal Sales Comparison Approach Update