FHA issued Mortgagee Letter 2023-18 updating the sales comparison approach for appraisals of certain manufactured homes. Per the Mortgagee Letter, FHA updated the policy exception announced in Mortgagee Letter 2020-48 that established an exception to the traditional comparable sales selection requirements for manufactured homes certified under Fannie Mae’s MH Advantage and Freddie Mac’s CHOICEHome programs. This Mortgagee Letter now requires appraisers to use the most appropriate site-built-home comparable sales when there are less than 2 comparable sales of manufactured homes certified under Fannie Mae’s MH Advantage and Freddie Mac’s CHOICEHome programs available. Previously, appraisers could use either factory-built or site-built construction. The Mortgagee Letter went into effect November 2, 2023.
Click to view the FHA Mortgagee Letter 2023-18: https://www.tenaco.com/wp-content/uploads/2023/11/FHA-Mortgagee-Letter-2023-18-11-02-23.pdf
Click to view the FHA Info #2023-86: https://www.tenaco.com/wp-content/uploads/2023/11/FHA-Info-2023-86-11-02-23.pdf
