FHA and HUD Updates on Loan Appraisal Policies
The FHA announced publication of revised manufactured housing guidelines, “for the valuation of manufactured homes certified under Fannie Mae’s MH Advantage and Freddie Mac’s CHOICEHome programs.”
How FHA Loan Appraisal Changes Affect Buying a Manufactured Home
When the FHA announced its updated policy in November 2023, that announcement required appraisers to begin using “the most appropriate site-built-home comparable sales when there are less than two comparable sales of these certified manufactured homes available” and that requirement become “effective immediately.”
Some homes certified under the Fannie Mae and Freddie Mac programs including those manufactured homes certified under the Fannie Mae and Freddie Mac programs (CrossMods) may include design features “that make them nearly indistinguishable from many site-built homes.”
Ending Regulatory Barriers
These new appraisal changes address “regulatory barriers in effect in some jurisdictions that have historically restricted the placement of manufactured homes. The new appraisal rules are meant to ease some of those restrictions among other things.
Why the Changes Matter
The changes, part of a larger Biden Administration plan to increase the affordability of manufactured homes, bring the FHA and HUD closer to industry standards in other parts of the housing sector.
The FHA and HUD feel these alterations “will improve the valuation of these homes for borrowers seeking FHA-insured mortgages. These changes also contribute to FHA’s efforts to increase the availability and affordability of manufactured housing...”
Making Affordable Housing More Widely Available
FHA officials are on the record stating the new changes are meant to increase the supply of affordable housing in America. HUD Secretary Marcia L. Fudge notes, “The critical step we're taking today ensures HUD is in alignment with our industry partners, and it will make more quality affordable housing available to people across the country.”
Federal Housing Commissioner Julia R. Gordon says the new rules eliminate “another roadblock” to helping Americans find affordable homes.
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