How Property Appraisals Work for Manufactured Homes

During the home buying process, your mortgage lender will need a property appraisal to determine your loan amount whether you’re buying a new manufactured home or preowned home. We explain what an appraisal is and how it works for manufactured homes to help simplify this part of the home buying journey.

What Are Property Appraisals?

First, let’s talk about what property appraisals are. An appraisal is an estimate of the fair market value of a property, which is the price a property would sell for under normal market conditions. A mortgage lender will want an appraisal to determine if the home’s value is at least equal to the mortgage amount to help secure a loan.

At Vanderbilt, we use a licensed third party appraisal management company to facilitate the assignment of the appraisal order to an unbiased, licensed appraiser. The cost of the appraisal is paid for by the buyer through their loan. Note: If the loan falls through, the buyer is responsible for paying out of pocket for the appraisal. All homes, whether they’re site-built, manufactured or modular, are appraised in accordance with the Uniform Standards of Professional Practice (USPAP), the ethical and performance standards for the appraisal profession in the United States.

The Appraisal Process for Manufactured Homes

The mortgage lender will verify income and will start a contract and request a deposit from the buyer. The lender will then approve the loan type based on the buyer’s application before ordering the appraisal.

An appraiser may take several approaches to determine a property’s value. They will look at current market trends, sale and rental prices of similar homes in the area and the value of renovations and repairs completed on a preowned home. They will also consider normal expenses like utilities, taxes and insurance. Once all data is collected, the appraiser will create a report and make a final opinion of the home’s value based on their findings.

The appraiser then sends this report to the mortgage lender to move the home buying process along. The process usually takes around nine days on home-only transactions and about 3-5 weeks for both land and home appraisals.

What to Expect After an Appraisal

The type of loan you’ll receive is already set before the appraisal, but the loan amount may change after the appraisal is complete. If the appraisal comes up short, the mortgage lender will readjust the loan. Keep in mind, a lender will not approve a loan that’s more than the home’s value. Once your appraisal comes back approved, you’re well on your way to closing on a home and only a couple steps away from becoming a homeowner.

We can help you start your home buying journey at Vanderbilt with one of our mortgage programs here.

Get Closer to Your Dream Home by Learning the Steps to the Home Loan Process.