Manufactured Home Appraisals: Why Additions Don’t Change the Rules
- Kim Clark
- 4d
- 3 min read
Updated: 3d
When it comes to Fannie Mae and Freddie Mac, a property that began life as a manufactured home will always be appraised as one—no matter how many site-built additions or modifications are made. The determining factor is the original HUD Code compliance and permanent foundation, which require appraisers to document HUD tags and the data plate, confirm engineering approval for any additions, and rely on manufactured home comparables rather than site-built properties. While Fannie Mae’s MH Advantage program offers a pathway for certain homes to qualify for financing more like site-built properties, the appraisal foundation remains the same: if it started as a HUD-coded manufactured home, it’s treated as one for lending purposes.
For Fannie Mae & Freddie Mac, a home with additions/modifications that started as a manufactured home always remains a manufactured home appraisal, even with site-built additions; the key is the original structure's HUD Code compliance and permanent foundation, requiring specific appraisal documentation (HUD tags, data plate), engineering sign-off for additions, and comparison to other manufactured homes, not site-built ones, though some MH Advantage criteria can make it more site-built-like for financing. [1, 2, 3, 4]
Key Fannie Mae & Freddie Mac Rules:
Always a Manufactured Home: If any part of the original factory-built home remains and meets Fannie/Freddie definitions (HUD Code, permanent chassis/foundation, titled real estate), the entire property is appraised as a manufactured home.
HUD Tags & Data Plate: The appraisal must document the HUD tags (on the corners) and the data plate (often under the sink/electrical panel).
Permanent Foundation: It must be on a permanent foundation and legally classified as real property.
Additions Require Engineering: Site-built additions must have engineering approval or be included in the original design/HUD data plate to confirm structural integrity.
Appraisal Comparables: Appraisers must use other manufactured homes as comparable sales, though a site-built home might be used as a third comparable with explanation. [1, 2, 3, 4, 5]
MH Advantage (Fannie Mae Program):
Don't let site-built additions fool you; if it started as a HUD-coded manufactured home on a permanent foundation, it's appraised as one, needing specialized documentation and comparables for Fannie/Freddie loans. [1, 3, 4]
For Homeowners from the MLS:
Your home is classified as a manufactured home because of how it was originally constructed, not because of what it looks like today or how much of it has been improved or replaced over time.
Manufactured homes are built to a specific federal construction standard that is different from site-built homes. That original construction standard becomes part of the home’s permanent identity. Once a structure is built and certified under those federal standards, it is legally and permanently considered a manufactured home.
Even when extensive changes are made, such as placing the home on a permanent foundation, removing the title, adding square footage, or replacing major components, the classification does not change. As long as any portion of the original manufactured structure remains, even if it is a small structural element, the home is still considered a manufactured home for disclosure, appraisal, lending, and MLS purposes.
This matters because buyers, lenders, appraisers, and insurers rely on the MLS to understand what they are evaluating. Listing the home as a site-built single-family residence would imply it was constructed entirely under site-built building standards, which would not be accurate. That would be misleading to buyers and could create serious disclosure issues later in the transaction.
Correct classification protects everyone involved. It ensures buyers receive clear and truthful information, allows appraisers to use appropriate comparable sales, and helps lenders determine financing eligibility early rather than after a contract is signed.
Your REALTOR® can and should highlight all improvements, upgrades, and added features of the home. Those enhancements absolutely affect value and marketability. The MLS property type, however, must reflect the original method of construction, even when the home has been significantly modified over time.
We follow the "once a mobile always a mobile" principal in the Silver City Regional MLS and your REALTOR® is required to list it in the MLS ad a mobile home.
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