Fannie Revises Policy for Appraising Some Manufactured Homes

Originally published on March 1, 2023, by Fannie Mae.


Fannie Mae requires market-based property valuations for manufactured homes demonstrated by a well-developed sales comparison approach to value that is further supported by the cost approach to value.

For manufactured housing property eligibility requirements, including special appraisal requirements for MH Advantage properties, see B2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built Housing. For manufactured housing mortgage eligibility and underwriting requirements, see B5-2, Manufactured Housing.

Manufactured Housing Appraiser Qualifications

The valuation principles for appraising manufactured homes are essentially the same as for other types of residential property. However, not all appraisers are knowledgeable and experienced about the unique construction process, as well as the manufacturers’ and federal, state, and local requirements for both construction and installation.

The lender must ensure that the appraiser is knowledgeable about the local manufactured home market and the unique construction process for manufactured homes, and has access to appropriate data sources to render an opinion of value for the manufactured home. Lenders must establish policies and procedures to ensure that qualified individuals are being selected in accordance with Fannie Mae's requirements as well as the Appraiser Independence Requirements.

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