what are the appraisal guidelines for a manufactured home

Manufactured home appraisals require a dedicated appraisal form (Form 1004C / Form 70B), verified HUD documentation, a minimum of two MH comparable sales, and a cost approach — with no appraisal waivers, hybrid, or desktop appraisals permitted.

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Appraisal Form Required

• Fannie Mae: "The appraiser must report the results of a manufactured home appraisal on the Manufactured Home Appraisal Report (Form 1004C)." Fannie Mae
• Freddie Mac (CHOICEHome): "Each Mortgage secured by a CHOICEHome requires an appraisal report completed on Form 70B, Manufactured Home Appraisal Report."
• Lender Overlay (AD Mortgage — VA): Full 1004C/70B appraisal required. The condition rating must be C4 or better.

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Appraiser Qualifications

• Fannie Mae: "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 in order to render an opinion of value for the manufactured home." Fannie Mae
• Freddie Mac: "The Seller must determine that the appraiser demonstrates the knowledge and experience to perform quality appraisals for Manufactured Homes."
• FHA (Title I — Chattel): "The Lender must engage a Chattel Appraiser who is not engaged in the business of manufactured home retail sales." FHA
• FHA (Real Property): "Lenders must use an FHA Roster Appraiser who can certify to prior experience appraising Manufactured Homes as Real Property." FHA

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HUD Data Plate and HUD Certification Label

Universal requirement across all programs.

• The HUD Data Plate is a paper document on the interior of the home showing the manufacturer's name, trade/model number, serial number, and factory-installed equipment. Fannie Mae
• The HUD Certification Label (metal plate) is affixed to the exterior of each section. Fannie Mae
• "The Manufactured Home Appraisal Report (Form 1004C) must have photos of either the HUD Data Plate or the HUD Certification Label(s)." Fannie Mae
  • Existing construction: photos of either are required.
  • New construction: both the HUD Data Plate and HUD Certification Label are required.
• "If neither can be obtained, the loan is not eligible for sale to Fannie Mae." Fannie Mae
• Alternative documentation: Lender may obtain a label verification letter or duplicate HUD Data Plate from the Institute for Building Technology and Safety (IBTS) or by contacting the In-Plant Primary Inspection Agency (IPIA). Fannie Mae
• Lender Overlay (Forward Lending — FHA): Appraiser must report all information on the Data Plate including manufacturer name, serial number, model, date of manufacture, and wind/roof load/thermal zone maps. "If the data plate is missing or appraiser cannot locate it, an IBTS report is required." Forward Lending

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Valuation Approaches

Sales Comparison Approach

• 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." Fannie Mae
• FHA: "The Appraiser must include at least two Manufactured Homes in the Sales Comparison Approach (SCA) Grid." FHA
• Freddie Mac: "If the appraisal report does not contain at least two comparable sales of similar Manufactured Homes, the Mortgage is not eligible for sale to Freddie Mac."
• Lender Overlay (Mega Capital — Conventional): Mega Capital
  • Multi-width: Minimum 2 similar MH comparable sales; third comparable may be site-built or modular.
  • Single-width: Minimum 2 similar MH comparables; one must be a closed sale of the same single-width configuration; third may be site-built or modular.
• Prohibited practice (Fannie Mae and Freddie Mac): "The appraiser must not create comparable sales by combining vacant land sales with the contract purchase price of the home." Mega Capital

Cost Approach

• Freddie Mac: "A detailed cost approach based on published sources and supported by market data is required for all Manufactured Home appraisals. The appraisal report must provide sufficient information and data to allow the Seller or other reviewers to replicate the cost figures and calculations."
• FHA (New Construction): "The Appraiser must apply the cost approach for New Construction for Manufactured Housing." FHA

Income Approach

• Freddie Mac: "The income approach is not required; however, it must be provided if necessary to develop a credible appraisal report."

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Value Conclusion — Real Property Only

• Fannie Mae / Lender Overlay (Mega Capital): Mega Capital "The appraiser must indicate a value conclusion based solely on the real property as completed consisting of the manufactured home, site improvements, and land on which the home is situated. The value conclusion cannot include any non-realty items including, but not limited to, insurance, warranties, and furniture."

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Site Requirements

Fannie Mae — the appraisal must address: Fannie Mae

• Compatibility of the site with the neighborhood.
• Conformity of the manufactured home to other manufactured homes in the neighborhood.
• Site size, shape, and topography must be conforming and acceptable.
• Adequate vehicular access, utilities, street improvements, and other amenities.
• Appraiser must comment on adverse conditions or anything atypical for the neighborhood.

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New Construction Appraisal Requirements

• Fannie Mae: "For new manufactured homes not yet attached to the land or not yet constructed, the appraisal may be based on either plans and specifications or an existing model home." "A certification of completion must be obtained before the mortgage is sold to Fannie Mae."
• Freddie Mac: "If the appraisal is performed before the Manufactured Home is delivered and installed on a permanent foundation, the Seller must document that the Manufactured Home is complete."
• Lender Overlay (Nations Direct — Home Possible/Freddie Mac): Nations Direct "New Construction will require a Structural Engineer's report to show that the property is designed to be used as a dwelling with permanent foundation and meets HUD requirements."

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Flood Zone

• FHA: "The Appraiser must stop work and contact the Mortgagee if the Appraiser determines that a Manufactured Home is located in FEMA Flood Zones A or V." FHA Work may resume only upon receipt of a LOMA, LOMR, or flood elevation certificate.
• FHA, VA, and Nations Direct (all programs): "Manufactured homes in a flood zone are not allowed." Forward Lending

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Additions and Structural Modifications

• Fannie Mae: Fannie Mae "Manufactured homes that have an addition or have had a structural modification are eligible under certain conditions. If the state requires inspection by a state agency to approve modifications, the lender is required to confirm the property has met the requirement. However, if the state does not have this requirement, the structural modification must be inspected and deemed structurally sound by a third party who is regulated by the state."
• FHA: FHA "If the Appraiser observes additions or structural changes to the original Manufactured Home, the Appraiser must condition the appraisal upon inspection by the state or local jurisdiction administrative agency... or a licensed structural engineer may report on the structural integrity."
• Lender Overlay (Forward Lending — FHA/VA): Forward Lending "Any addition to the original structure (i.e. patio, deck, carport, rooms, etc.) requires a structural engineer report."
• Lender Overlay (Nations Direct — Home Possible/Freddie Mac): Nations Direct "Additions to the property are not permitted if the addition was to add GLA or if there were structural changes to the home (additions such as decks and green rooms without structural changes to the property may be accepted)."

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Appraisal Waiver / Alternate Appraisal Types — Not Eligible

Manufactured homes are explicitly ineligible for appraisal waivers, hybrid appraisals, and property data reports across multiple lender programs.

• Nations Direct (Freddie Mac and Fannie Mae matrices): Nations Direct "2-4 Unit properties & Manufactured Homes are ineligible" for Hybrid Appraisals. "Manufactured homes are ineligible" for Property Data Reports (ACE+PDR).
• Nations Direct (HomeReady VLIP and Home Possible VLIP): Nations Direct "Condominium and Manufactured Homes are ineligible" for Desktop Appraisals.
• Freddie Mac (CHOICEHome): "A Mortgage secured by a CHOICEHome is not eligible for automated collateral evaluation (ACE) or ACE+PDR."

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MH Advantage (Fannie Mae) / CHOICEHome (Freddie Mac) — Elevated-Tier Program Overlays

• Fannie Mae (MH Advantage): The appraisal (Form 1004C), Appraisal Update (Form 1004D), or completion alternatives must include photos of the MH Advantage Sticker, and either the HUD Data Plate or HUD Certification Label(s), plus photos of all driveways, sidewalks, and detached structures. Lender must verify via appraisal that property includes:
  • Permanent foundation meeting HUD's Permanent Foundation Guide.
  • Engineered foundation certified by a registered architect or PE.
  • Masonry/poured concrete perimeter.
  • Covered porch (minimum 72 sq. ft.).
  • For new single-section construction after June 4, 2026: attached garage or carport.
• Freddie Mac (CHOICEHome): "The appraisal report should contain at least one comparable CHOICEHome sale. If none are available, the appraisal report may contain site-built homes as comparable sales."

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Data Sources

• Fannie Mae: Fannie Mae "One important source of manufactured housing information is the NADA Manufactured Housing Appraisal Guide... Another source of information is Marshall & Swift's Residential Cost Handbook." "The appraiser must support their opinion about both the quality and the condition of the manufactured home because they play a very important role in the value and marketability of manufactured homes."

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Quick Reference