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
