Fannie Mae Appraisal Guidelines for Modular Housing

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This page is about Fannie Mae's Appraisal Guidelines as they pertain to modular housing.


Contents

Appraising Modular Housing

As outlined in the guidelines below, Fannie Mae does not distinguish between modular housing and site built homes for the purpose of appraising or valuing a property. In fact, according to the Fannie Mae Appraisers' Handbook, an appraiser may use either other modular homes or site-built homes as comparables when appraising a modular home. This is not the case for manufactured homes, where other manufactured homes must be used as comparables. The guidelines make a clear distinction between modular housing, built to the Uniform Building Code administered by the states, without a permanent metal chassis and manufactured housing, built to the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C.A. §§ 5401-5426) (HUD code) on a permanent chassis.


Fannie Mae's Definitions of "Other Factory-Built Housing"

XI, 304.02: Other Factory-Built Housing (08/24/03)


A. Modular home. It must be built under the Uniform Building Code that is administered by the state agency that is responsible for adopting and administering building code requirements for the state in which the modular home is installed.


B. Factory-built home that is any other type of prefabricated, panelized, or sectional housing. It does not have to satisfy either HUD’s Federal Manufactured Home Construction and Safety Standards or the Uniform Building Codes that are adopted and administered by the state in which the home is installed. The home must conform to local building codes in the area in which it will be permanently located.


We do not have minimum requirements for width, size, roof pitch, or any other specific construction detail for modular homes, or any other types of factory-built homes. Rather, each home must have sufficient square footage and room dimensions to be acceptable to typical purchasers in the subject market area. Since quality can account for large differences in the values of factory-built homes, it is important for the appraiser to become familiar with the features that affect the quality of a factory-built home so that the information can be included in the appraisal report (if needed) to support his or her opinion of value.


The process of selecting comparable sales for factory-built housing is generally the same as that for selecting comparable sales for site-built housing. We require the appraiser to address both the marketability and comparability of modular homes and other types of factory-built housing. When the subject property is modular, prefabricated, panelized, or sectional housing, we do not require that one or more of the comparable sales be the same type of factory-built housing (although using comparable sales of similar types of homes generally enhances the reliability of the appraiser’s opinion of value). We do expect the appraiser to include in the appraisal report the most appropriate comparable sales data to support his or her opinion of value for the subject property.

Excerpted from Fannie Mae Single Family 2007 Selling Guide, Part XI: Property and Appraisal Guidelines,XI, Chapter 3: Special Appraisal, Considerations (06/30/02),XI, 304: Factory-Built Housing (08/24/03),XI, 304.02: Other Factory-Built Housing (08/24/03) courtesy of Allregs.com.


References & Notes

  • The above information was excerpted from Fannie Mae Single Family 2007 Selling Guide, Part XI: Property and Appraisal Guidelines,XI, Chapter 3: Special Appraisal, Considerations (06/30/02),XI, 304: Factory-Built Housing (08/24/03),XI, 304.02: Other Factory-Built Housing (08/24/03) courtesy of Allregs.com.
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