The Federal Housing Administration (FHA) has published updated appraisal requirements for the valuation of manufactured homes certified under Fannie Mae’s MH Advantage and Freddie Mac’s ChoiceHome programs.
According to the FHA, the updates align appraisal requirements with those of other industry participants, with the goal of improving the valuation of these homes for borrowers seeking FHA-insured mortgages. Starting immediately, the updated policy for the valuation of manufactured homes certified under the Fannie Mae and Freddie Mac programs will require appraisers to use the most appropriate site-built-home comparable sales when there are less than two comparable sales of these certified manufactured homes available.
The FHA added that manufactured homes certified under the Fannie Mae and Freddie Mac programs, also known as CrossMods, will include design features that make them nearly indistinguishable from many site-built homes and address regulatory barriers in effect in some jurisdictions that have historically restricted the placement of manufactured homes.
“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,” said Federal Housing Commissioner Julia R. Gordon. “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.”
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