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> Conventional > Property Eligibility & Occupancy > General Guidelines (4/28/23)

Unique Housing Types

·In the appraisal and appraisal report review processes, special consideration must be given to properties

that represent unique housing for the subject neighborhood.

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·Unique or nontraditional types of housing, including, but not limited to, earth houses, geodesic domes,

and log houses, are eligible provided the appraiser has adequate information to develop a reliable opinion

of market value. It is not necessary for one or more of the comparable sales to be of the same design and

appeal as the property that is being appraised, although appraisal accuracy is enhanced by using comparable

sales that are the most similar to the subject property.

· On a case-by-case basis, both the appraiser and the underwriter must independently determine whether

there is sufficient information available to develop a reliable opinion of market value. This will depend on

the extent of the differences between the special or unique property and the more traditional types of houses

in the neighborhood and the number of such properties that have already been sold in the neighborhood.

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· When appraising unique properties, o If the appraiser cannot locate recent comparable sales of the same

design and appeal but is able to determine sound adjustments for the differences between the comparables

that are available and the subject property; and demonstrate the marketability of the property based on

older comparable sales, comparable sales in competing neighborhoods, the existence of similar properties

in the market area, and any other reliable market data, the property is acceptable. o If the appraiser is not

able to find any evidence of market acceptance, and the characteristics of the property are so significantly

different that he or she cannot establish a reliable opinion of market value, the property is not acceptable. · There should be comparables of similar size to the subject property to support the general acceptability of a particular property type. Prefabricated Housing other than Manufactured Housing · Factory-built housing – Produced at a factory, then transported and assembled at the final site. Factory-built housing that is not built on a permanent chassis, such as modular, prefabricated, panelized, or sectional housing is not considered manufactured housing and is eligible for financing. The structure must assume the characteristics of site-built housing and be legally classified as real property. · Prefabricated, panelized, or sectional housing units – Built in sections in a climate-controlled home building facility, then moved to a home site and assembled. These homes must conform to all local building codes in the jurisdiction in which they are permanently located. · Modular homes are built to the state building code requirements of the state in which they are to be installed. Construction methods and most of the applicable standards are comparable to a manufactured home. Modular homes are shipped on a flatbed truck, allowing for a slightly greater variation in sizes. The house is constructed in separate box-like modules which are then secured together at the site to form a whole. Modular homes must meet state and local regulatory codes. Many states adopt their local building standards from the International Code Council instead of creating and enforcing their own codes. · Mobile Home – Not allowed. Mobile home is the term for Manufactured home prior to 1976 when the HUD code was created to improve the durability and quality of manufactured homes. · Each home must have sufficient square footage and room dimensions to be acceptable in the subject market area. · It is important for the appraiser to become familiar with the features that affect the quality of a factory-built home so that the information can be included in the appraisal to support the opinion of value. · Selection of the comparable sales is generally the same as that for site-built housing. The appraiser must address both the marketability and comparability of the home. It is not required that one or more of the comparable sales be the same type of factory-built housing (although using comparable sales of similar types of homes generally enhances the reliability of the appraiser’s opinion of value). The appraiser is expected to include the most appropriate comparable sales to support the opinion of value. Ineligible Properties · Assisted living projects · Bed and breakfast properties · Section 184 · Barndominiums · Boarding house · Builder model leaseback (purchase transactions) · Commercial properties · Condotel · Houseboats · Industrial properties · Properties for which the appraisal indicates that the current improvements do not represent the “highest and best use” · Mobile home · Multi-family dwelling containing more than four units · Multi-family condominium dwelling with ownership of more than one unit evidenced by a single deed and/or mortgage · On-frame modular homes · Properties encumbered with private transfer fee covenants · Properties located in Lava Zone 1 or 2 · Properties located on Native American Tribal Land · Properties with a C5 or C6 Condition Rating · Properties with deed restrictions that limit transferability of title, or contain a “first right of refusal” provision · Properties without full utilities installed to meet all local health and safety standards · Property with physical deficiencies remaining after closing that could affect the soundness, structural integrity, or livability of the home · Shouses · 3D printed homes · Tax-sheltered syndicate · Timeshare unit/project · Unimproved or vacant land · Working ranch, farm, or orchard