HUD/FHA References

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Appendix D
HOC Reference Guide
FHA 4150.2 Handbook (1999)
Mortgagee Letters
Frequently Asked Questions (published by FHA)
Searchable Resources (unofficial)
Approved FHA Condominiums

Other Resources

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Manufactured Home Data Plate Missing

It is up to the lender to verify the HUD seal if it is missing.

Page 52 of Appendix D states:

”Mark the appropriate box to indicate if the Data Plate is attached. If the Data Plate is missing and/or the appraiser is unable to locate it, the appraiser only needs to report this fact and is not required to secure the Data Plate information from another source.”

Let the underwriter do what they are supposed to do.

HOC Reference Guide, Paragraph 1-9f contradicts Appendix D but was published October 31, 2003 and was superseded by Appendix D which was effective January 2006.

Above-Ground Pool

FNMA does not address above-ground pools but FHA does very strongly.

Page 16 of Appendix D says

”If the sale involves personal property (e.g. above ground pool, lawn mower, furniture, etc.), it should be identified and excluded from the valuation.”

The position is reiterated on page 25:

”Above-ground pools are considered personal property and are not to be included in the value.”

I cannot imagine a circumstance in which I would include an above-ground pool as part of the residence. What you have is a nice deck with a hole in it.

Some photos of above-ground, in-ground, and on-ground pools.

High Voltage Transmission Line is Acceptable

The HOC Reference Guide, Page 1-18F Updated 1/27/2007:

The appraiser must indicate whether the dwelling or related property improvements is located within the easement serving a high-voltage transmission line, radio/TV transmission tower, cell phone tower, microwave relay dish or tower, or satellite dish (radio, TV cable, etc).

• "If the dwelling or related property improvement is located within such an easement, the DE Underwriter must obtain a letter from the owner or operator of the tower indicating that the dwelling and its related property improvements are not located within the tower’s (engineered) fall distance in order to waive this requirement."

• "If the dwelling and related property improvements are located outside the easement, the property is considered eligible and no further action is necessary. The appraiser, however, is instructed to note and comment on the effect on marketability resulting from the proximity to such site hazards and nuisances."

Conclusion:

It is appropriate to comment on the presence of the transmission power lines and whether or not the subject is located within the easement, nothing more.  An adjustment may be in order because of the presence of a overhead high voltage transmission line.

Utilities are off

Question: What steps should an appraiser take when the property he/she is appraising is vacant and the utilities are off?

Answer: The HOC Reference Guide, Page 1-19 says:

• "When utilities (water, gas, electric) are NOT on at the time of appraisal the appraiser is to condition for further inspection to determine if the utilities are in proper working order."

• "NOTE: The appraiser will also annotate in the appraisal that additional repair requirements may apply once all the utilities are on and fully functional."
  

Excess Land

Question: I am appraising a manufactured home on 18 acres. I was told by the lender that "FHA won't lend on more than 8 acres" and to just appraise the home and 8 acres. I understand that there is an excess land policy but can't find anything that specifically says 8 acres is the maximum. This is a fairly rural area and I want to go with what is the norm for the area, which may be more than 8 acres (don't want to have to do a land adjustment if not necessary).

Answer: Paragraph 4–5A.2 of the 4150.2 manual is the only reference HUD's excess land policy. Eight acres is not a criteria.

FHA Excess Land Policy