Selling Guide

Published December 16, 2020

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What are the MH Advantage property eligibility requirements?

MH Advantage Property Eligibility Requirements

MH Advantage is manufactured housing that is built to meet construction, architectural design, and energy efficiency standards that are more consistent with site-built homes. 

Examples of the physical characteristics for MH Advantage include 

  • specific architectural and aesthetic features such as distinctive roof treatments (eaves and higher pitch roofline), lower profile foundation, garages or carports, porches, and dormers; 
  • construction elements including durability features, such as durable siding materials; and 
  • energy efficiency standards (minimum energy ratings apply). 

Fannie Mae has agreements with manufacturers of homes intended to qualify for MH Advantage based on specific design criteria. The agreement allows the manufacturers to apply an MH Advantage Sticker to multi-width manufactured homes that meet the design criteria. With the exception of the lender requirements outlined below, lenders will not be required to independently determine the property’s eligibility for MH Advantage. 

Note: Single-width manufactured homes are not eligible for MH Advantage

Lenders’ and appraisers’ responsibilities relating to MH Advantage loans are detailed below: 

Requirements
Lender The lender must
  • ensure the property meets the MH Advantage requirements by reviewing appraisal photos evidencing the presence of the MH Advantage Sticker (placed in proximity to the HUD Data Plate), HUD Data Plate, and HUD Certification Label(s).
  • verify through appraisal or final inspection photos
    • the presence of a driveway leading to the home (or to the garage or carport, if one is present). The driveway must consist of blacktop, pavers, bricks, concrete, cement, or gravel (gravel must have a minimum depth of four inches), and;
    • the presence of a sidewalk connecting either the driveway, or a detached garage or carport, to a door or attached porch of the home. The sidewalk must consist of blacktop, pavers, flagstone, bricks, concrete, or cement.
  • For new construction, the lender is responsible for compliance with Fannie Mae’s standard appraisal requirements, specifically B4-1.2-03, Requirements for Postponed Improvements and, B4-1.4-01, Factory-Built Housing: Manufactured Housing for appraisals based on plans and specifications. This will ensure site improvements that are not attached to the home, such as detached garages, are complete.
Appraisal Standard valuation requirements for manufactured homes apply, including:

The Manufactured Home Appraisal Report (1004C) or Appraisal Completion Report (1004D) must include photos of the MH Advantage Sticker, HUD Data Plate, HUD Certification Label(s), and the site showing all driveways, sidewalks, and detached structures located on the site.

Unless stated otherwise, loans secured by manufactured homes that meet the MH Advantage criteria are subject to the same requirements that apply to all manufactured homes. (References to “manufactured homes” or “manufactured housing” apply to MH Advantage unless an exception is stated.) 

Note that loans secured by MH Advantage properties are afforded a number of flexibilities over standard manufactured housing, including higher LTV ratios, standard mortgage insurance, and reduced loan-level price adjustments. See the Eligibility Matrix, B7-1-02, Mortgage Insurance Coverage Requirements, and Loan-Level Price Adjustment Matrix, respectively, for additional information. 
 

For additional information, see B2-3-02, Special Property Eligibility and Underwriting Considerations: Factory-Built Housing.


 

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