The Federal Housing Administration (FHA) made changes to valuation requirements for certain manufactured homes certified under Fannie Mae’s MH Advantage and Freddie Mac’s CHOICEHome programs, Federal Housing Commissioner Julia Gordon announced at the Manufactured Housing Institute’s National Communities Conference Fall Leadership Forum in Chicago.
“Updating FHA appraisal requirements to align with the Fannie Mae and Freddie Mac certification programs supports our comprehensive efforts to increase both the supply and affordability of manufactured homes,” Gordon said. “Today, we’ve removed another roadblock limiting the effectiveness of FHA programs in serving buyers of these manufactured homes. We hope it will facilitate the continued growth and adoption of this important source of affordable and energy-efficient housing.”
The updates, included in a mortgagee letter and effective immediately, were made to the exception in the Sales Comparison Approach for Manufactured Housing in the Single-Family Housing Policy Handbook 4000.1. The exception now states, “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 fewer than two comparable MH Advantage or CHOICEHome sales are available, the appraiser must use the most appropriate site-built comparable sales available and must provide detailed justification to support the appraiser’s selection of comparable properties and the adjustments made for dissimilarities to the subject property (emphasis in the original).”
These updates, the agency stated, align FHA appraisal requirements with those of other industry participants and will improve the valuation of these homes for borrowers seeking FHA-insured mortgages.
“Increasing the supply of affordable homes in this country will require us to use every tool available to us,” U.S. Department of Housing and Urban Development (HUD) Secretary Marcia Fudge said. “That includes innovative solutions like manufactured housing. The critical step we’re taking today ensures HUD is in alignment with our industry partners, and it will make more quality affordable housing available to people across the country.”
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