Manufactured Home Appraisals

For FHA and Conventional Financing

Manufactured homes while not the predominant home style in the state of Delaware still comprise over 10 percent of all housing in the state. This estimate includes homes that are on there own land and those on leases lots. While we do appraisals on manufactured homes on leased lots, most of my work involves appraising manufactured homes that include the land.

Many people still refer to manufactured homes as mobile homes or trailers, but technically mobile homes are manufactured homes built before HUD certification in 1976. Homes built after that date and certified by HUD are what the industry refers to as manufactured housing.

Manufactured housing has typically been purchased as lower priced alternatives to stick built homes of comparable size. However more and more manufactured homes are competing head to head with their stick built counterpart and offering more bang for the buck. While the lower end manufactured housing units are easy to identify, the upgraded models are becoming almost impossible for the average person to distinguish. Even some appraisers can be fooled if they are not experienced with the product.

Even some very knowledgeable real estate and mortgage professionals confuse manufactured home with modular homes. Modular homes are similar to stick built homes except they are built in a factory setting just like manufactured homes. The difference is that modular homes sit on a perimeter sill plate on foundation system which is identical to stick built homes. Manufactured homes in essence come with their own foundation system which in Delaware typically is permanently fixed to a concrete block pier foundation system.

The main difference for the consumer and lending professionals is that manufactured homes is subject to different mortgage restrictions than either stick or modular built homes.

For appraisal purposes an appraiser treats a modular home in virtually the same way that a stick built home is appraised. However, the appraisal requirements for a manufactured home, differs significantly from stick and modular. Not only is the appraisal form different but some of the appraisal practices that are typically associated with manufactured homes. There are unique characteristics to appraising manufactured and mortgage professionals and owners and buyers need to be sure that when they need a manufactured home appraisal, regardless of whether it is for conventional or FHA financing, that the appraiser be experienced and qualified to perform and complete the assignment.

If you are a consumer who needs a manufactured home loan and have not found a lender yet, I recommend you contact Larry Knopf of 1^st Capitol Mortgage at 302-674-4265 or visit his website at 1stcaponlin.com. Larry specializes in financing manufactured homes and is probably one of the most knowledgeable mortgage professionals I know. I receive no compensation for referring business to 1^st Capitol Mortgage and I recommend that anyone considering any financing to shop around and speak to at least 3 mortgage professionals before choosing the best one for you.