VA Circular on Manufactured Home Appraisal Report

The Department of Veterans Affairs (VA) issued Circular 26-14-24: Manufactured Home Appraisal Report (09/05/14). The purpose of the Circular is to provide information to program participants on the use of the Manufactured Home Appraisal Report (Freddie Mac Form 70B/Fannie Mae Form 1004C, dated March 2005) for Department of Veterans Affairs (VA) manufactured home (MH) appraisals.

VA will continue to use the Manufactured Home Appraisal Report (MHAR) rather than the Uniform Residential Appraisal Report (URAR).  The VA determined the  MHAR is preferable over the use of the URAR for MH appraisals because it was specifically designed to identify MH information in detail and should allow for a more comprehensive and consistent MH appraisal report that is easier to prepare and read.

The Manufactured Home Appraisal Report is available online at Fannie Mae’s website and at Freddie Mac’s website.

The MHAR must be acceptably completed, including entries for all relevant questions based on personal observation. In addition, VA fee appraisers must identify and require correction of deficiencies or conditions necessary to ensure the subject property meets applicable VA minimum property requirements.

The Cost Approach is not required for VA purposes, but may be completed to supplement the indicated value in the sales comparison approach. Since VA relies on the sales comparison approach to value (except in very unusual circumstances), the VA value estimate (market value) should never exceed that indicated in the Sales Comparison Approach without detailed explanation.

All inquiries should be sent to colenders@vba.va.gov.

The Circular will remain in effect until January 1, 2017.