FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > D. Appraiser and Property Requirements for Title II Forward and Reverse Mortgages > 2. General Appraiser Requirements (03/19/2025) — 3. Acceptable Reporting Forms and Protocols

FHA Single Family Housing Policy Handbook 4000.1, Part II — 3. Acceptable Reporting Forms and Protocols (04/10/2025)

Effective 2025-04-10 · publisher's stamp for this provision

3. Acceptable Reporting Forms and Protocols (04/10/2025) FHA only accepts appraisals in the Mortgage Industry Standards Maintenance Organization (MISMO) 2.6 with embedded PDF format, as created directly by the appraiser (first generation). FHA does not accept private or proprietary data formats or appraisal reports that have been manipulated or “translated” by anyone or any process. Forms to be used in the completion of an FHA appraisal are as follows: Property/Assignment Type Acceptable Reporting Form Single Family, Detached, Attached or Semi-Detached Residential Property (One-Unit Property or a One-Unit Property with a Single Accessory Dwelling Unit (ADU)) Fannie Mae Form 1004/Freddie Mac Form 70, Uniform Residential Appraisal Report (URAR) Single Family Comparable Market Rent Analysis Fannie Mae Form 1007/Freddie Mac Form 1000, Single Family Comparable Rent Schedule Property/Assignment Type Acceptable Reporting Form Single Unit Condominium Fannie Mae Form 1073/Freddie Mac Form 465, Individual Condominium Unit Appraisal Report Manufactured (HUD Code) Housing (One-Unit Property or a One-Unit Property with a Single ADU) Fannie Mae Form 1004C/Freddie Mac Form 70B, Manufactured Home Appraisal Report Small Residential Income Properties (Two- to Four-Units) Fannie Mae Form 1025/Freddie Mac Form 72, Small Residential Income Property Appraisal Report Appraisal Update (All Property Types) Summary Appraisal Update Report Section of Fannie Mae Form 1004D/Freddie Mac Form 442, Appraisal Update and/or Completion Report Certification of Completion Certification of Completion Section of Fannie Mae Form 1004D/Freddie Mac Form 442, Appraisal Update and/or Completion Report Instructions for reporting the results of the appraisal, including data and file format and delivery, are found in the FHA Single Family Housing Appraisal Report and Data Delivery Guide. a. Application of Minimum Property Requirements and Minimum Property Standards by Construction Status (02/16/2021) i. Existing Construction (A) Definition Existing Construction refers to a Property that has been 100 percent complete for over one year or has been completed for less than one year and was previously occupied. (B) Standard For Existing Construction, the Appraiser must notify the Mortgagee of the deficiencies when the Property does not comply with HUD’s MPR. ii. New Construction (A) Definition New Construction refers to Proposed Construction, Properties Under Construction, and Properties Existing Less than One Year as defined below: • Proposed Construction refers to a Property where no concrete or permanent material has been placed. Digging of footing is not considered permanent. • Under Construction refers to the period from the first placement of permanent material to 100 percent completion with no Certificate of Occupancy (CO) or equivalent. • Existing Less than One Year refers to a Property that is 100 percent complete and has been completed less than one year from the date of the issuance of the CO or equivalent. The Property must have never been occupied. (B) Standard For New Construction, the Appraiser must notify the Mortgagee of the deficiencies when the Property does not comply with HUD’s MPR and MPS, including 24 CFR §§ 200.926a–200.926e. iii. Determination of Defective Conditions (A) Definition Defective Conditions refer to defective construction, evidence of continuing settlement, excessive dampness, leakage, decay, termites, environmental hazards or other conditions affecting the health and safety of occupants, collateral security or structural soundness of the dwelling. (B) Standard The Appraiser must identify readily observable defective conditions. Defective Conditions Requiring Repair The Appraiser must identify defective conditions that are curable and will make the Property comply with HUD’s MPR or MPS when cured, and provide an estimated cost to cure. iv. Inspection by a Qualified Individual or Entity If the Appraiser cannot determine that a Property meets HUD’s MPR or MPS, an inspection by a qualified individual or entity may be required. Conditions that require an inspection by qualified individuals or entities include: • standing water against the foundation and/or excessively damp basements; • hazardous materials on the site or within the improvements; • faulty or defective mechanical systems (electrical, plumbing or heating/cooling); • evidence of possible structural failure (e.g., settlement or bulging foundation wall, unsupported floor joists, cracked masonry walls or foundation); • evidence of possible pest infestation; • leaking or worn-out roofs; or • any other condition that in the professional judgment of the Appraiser warrants inspection. Appraisers may not recommend inspections only as a means of limiting liability. The reason or indication of a particular problem must be given when requiring an inspection. Required Analysis and Reporting The Appraiser must observe, analyze and report defective conditions and must also provide photographic documentation of those conditions in the appraisal report. If inspection is required, the Appraiser must cite the reason for requiring an inspection.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09