Standard Appraisal Reporting Forms

Standard Appraisal Reporting Forms

UAD 3.6 and the Redesigned URAR

Fannie Mae's current UAD timeline identifies November 2, 2026 as the UAD 3.6 mandate. As of this guide's October 18, 2026 source check, that date is still ahead. The redesigned Uniform Residential Appraisal Report uses a data-driven report framework across residential property types rather than requiring the appraiser to treat every legacy form number as a permanent reporting rule.

The form descriptions below teach the legacy forms' purpose and analytical content, which remain useful for reading existing files and understanding property-specific issues. Use the applicable current UAD 3.6 Policy Supplement, delivery timeline, transaction eligibility, and client requirements for an actual assignment. USPAP governs development and reporting substance; it does not require a Fannie Mae form for every appraisal.

Quality and condition ratings are taught in the construction chapter. Apply their definitions to the property on the relevant date, and do not infer a prescribed dollar adjustment from a rating alone.

Fannie Mae Form 1004 / Freddie Mac Form 70 (URAR)

The Uniform Residential Appraisal Report (URAR) is the universal standard for single-family residential properties, detached dwellings, attached townhomes, and planned unit developments (PUDs). A section-by-section breakdown reveals the rigorous sequence of data collection:

1. Subject Section

• Property Identification: Complete municipal street address, legal description, assessor's parcel number (APN), tax year, and total ad valorem property taxes.
• Borrower & Ownership: Borrower name, current owner of record (crucial for detecting illegal property flipping), and occupant status (Owner, Tenant, Vacant).
• Property Rights Appraised: Identifies whether the property is held in Fee Simple (complete bundle of rights) or Leasehold (possessory interest subject to a ground lease).
• Contract Analysis: When the assignment involves a purchase transaction, the appraiser must review and analyze the contract of sale, noting the contract price, contract date, whether the seller is the owner of record, and all financial assistance, seller concessions, or personal property inclusions.

2. Neighborhood Section

• Location & Development: Location classification (Urban, Suburban, or Rural), built-up percentage (Over 75%, 25-75%, Under 25%), and growth rate (Rapid, Stable, Slow).
• One-Unit Housing Trends: Explicit indicators tracking property values (Increasing, Stable, Declining), demand/supply dynamics (Shortage, In Balance, Over Supply), and prevailing marketing time (Under 3 mos, 3-6 mos, Over 6 mos).
• Price and Age Ranges: Tracks the low, high, and predominant price and age of single-family housing in the defined submarket.
• Neighborhood Boundaries & Description: Clear geographic demarcation using recognizable boundaries (major highways, rail lines, waterways, municipal borders) and an objective demographic/amenity narrative.

3. Site Section

• Dimensions & Topography: Specific site dimensions, total lot area (in square feet or acres), shape, topography, and view.
• Zoning Classification & Compliance: Specific zoning code (e.g., "R-1 Single Family Residential") and legal status:
  • Legal: Conforms to all current density, setback, and use rules.
  • Legal Nonconforming (Grandfathered): Conformed when built, but violates current zoning amendments (must disclose if rebuilding is permitted if destroyed).
  • Illegal: Built without permits or violates statutory use prohibitions.
  • No Zoning: Absence of municipal zoning restrictions.
• Highest and Best Use: Explicit checkbox stating whether the present improved use represents the Highest and Best Use. If "No," the appraisal cannot proceed on Form 1004 for conventional mortgage underwriting.
• Utilities & Off-Site Improvements: Verification of public vs. private water and sanitary sewer, street surfaces (asphalt, concrete, gravel), and curbs/gutters.
• FEMA Flood Data: Special Flood Hazard Area (SFHA) designation (Yes/No), FEMA flood zone, map date, and panel number.

4. Improvements Section

• General Description: Number of units, stories, architectural design style, year built, and effective age.
• Foundation: Concrete slab, crawl space, full or partial basement, sump pump, and signs of dampness, settlement, or infestation.
• Exterior Finishes: Foundation walls, exterior siding, roof covering material and condition, gutters/downspouts, and window types.
• Interior Materials: Flooring (hardwood, tile, carpet), walls (drywall, plaster), bathroom finishes, heating and cooling system types and fuel sources.
• Gross Living Area (GLA): Measured strictly to exterior dimensions adhering to ANSI Z765 standards. Finished lower-level or basement space—even if fully walk-out and finished to high quality—must never be included in above-grade GLA on Form 1004.

5. Sales Comparison Approach Grid

• Comparable Selection: Minimum of three closed comparable sales, supplemented by pending sales or active listings.
• Adjustment Elements: Verified financing concessions, market condition (time) adjustments, location, leasehold/fee simple, site size, view, architectural design, quality (Q-rating), condition (C-rating), room counts (total, bedrooms, bathrooms), gross living area, basement finished rooms, functional utility, heating/cooling, and exterior amenities (garages, pools, covered patios).
• Net and Gross Adjustments: Calculation of net adjustment percentage (net adjustment / sale price) and gross adjustment percentage (absolute sum of adjustments / sale price) to gauge comparability.

6. Reconciliation, Cost, and Income Sections

• Cost Approach: Land value estimation, replacement cost new of improvements, deduction of physical, functional, and external depreciation, plus depreciated value of site improvements.
• Income Approach: Monthly market rent multiplied by the market Gross Rent Multiplier (GRM).
• Reconciliation: Final synthesis, assignment condition checkboxes ("as is", "subject to completion per plans/specs", "subject to repairs/alterations", or "subject to inspection"), and final market value opinion.

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Form 1025 / Form 72 (Small Residential Income Property Appraisal Report)

Fannie Mae Form 1025 / Freddie Mac Form 72 is specifically engineered for 2-to-4 unit residential income properties (duplexes, triplexes, and fourplexes).

Key Structural Differences from Form 1004

1. Unit Breakdown Grid: Detailed physical and economic profiling of each individual unit (Unit 1, Unit 2, Unit 3, Unit 4), including room count, bedroom and bath count, gross living area, current contract rent, lease expiration dates, and reconciled monthly market rent.
2. Operating Income Statement (Form 216): A distinct operating-income form can support underwriting; it is not embedded in Form 1025 and its financing-related cash-flow measures must be distinguished from appraisal NOI. Financial analysis can address:
   • Potential Gross Income (PGI): Full market rent potential of all units plus auxiliary income (parking, laundry, storage).
   • Vacancy and Collection Loss: Submarket vacancy percentage deducted from PGI to establish Effective Gross Income (EGI).
   • Operating Expenses: Comprehensive itemization of fixed expenses (property taxes, insurance), variable expenses (utilities, management fees, maintenance, pest control), and replacement reserves (roof, water heaters, HVAC units).
   • Net Operating Income (NOI): Calculation of net cash flow before debt service.
3. Gross Rent Multiplier (GRM) Prominence: The Income Capitalization Approach is heavily emphasized. The appraiser extracts GRMs from recent comparable multi-family sales ($GRM = \text{Sale Price} / \text{Gross Monthly Rent}$) and applies the reconciled GRM to the subject's total gross monthly market rent:

$\text{Indicated Value} = \text{Total Gross Monthly Market Rent} \times \text{Reconciled GRM}$

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Form 1073 / Form 465 (Individual Condominium Unit Appraisal Report)

Form 1073 / Form 465 is dedicated to the valuation of an individual condominium unit.

The Nature of Condominium Ownership

In a condominium, the owner holds title to the defined unit, whose legal boundaries are established by the declaration, plat, and applicable law, paired with an undivided percentage interest in the common elements (building structure, land, elevators, parking structures, landscaped grounds, recreational amenities).

Project-Specific Analysis

Form 1073 requires extensive project-level underwriting that does not exist on Form 1004:

• Project Status: Tracks whether the project is complete or subject to additional planned phases.
• Developer Control: Discloses whether the homeowners association (HOA) has been turned over to the unit owners or remains controlled by the developer.
• Unit Mix & Occupancy Ratios: Documents the total number of units in the project and phase, the number of units sold, and the ratio of owner-occupied units vs. tenant-occupied units (a critical metric for GSE loan warrantability).
• HOA Financial Stability: Analysis of the annual HOA operating budget, adequacy of capital replacement reserves, special assessments, and whether the HOA is involved in active litigation.
• Commercial Space Allocation: Disclosure of non-residential commercial square footage within the project, which cannot exceed GSE limits.

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Form 2055 (Exterior-Only Inspection Residential Appraisal Report)

Fannie Mae Form 2055 / Freddie Mac Form 2055 is designed for exterior-only ("drive-by") inspections of single-family detached, attached, or PUD residences.

Scope of Work and Inspection Boundaries

• The appraiser inspects the subject property strictly from the street or public right-of-way.
• The appraiser does not enter the residence, inspect the rear yard (unless accessible from a public street), or physically verify interior condition, layout, or finishes.

Reliable Data and Applicable Assumptions

Because the appraiser cannot view the interior, USPAP and GSE guidelines mandate that the appraiser must:

1. Obtain credible information regarding the interior physical characteristics from reliable secondary data sources (such as prior MLS listings, municipal building permits, tax assessor property cards, or builder specifications).
2. Determine whether a specific material uncertainty warrants an extraordinary assumption with a reasonable basis; lack of personal inspection alone does not automatically create one. Meet any program-specific constraints.

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Form 1004C (Manufactured Home Appraisal Report)

Form 1004C is the mandatory reporting instrument for manufactured homes constructed in a factory under federal standards.

Federal HUD Code vs. Modular Homes

A manufactured home is built on a permanent steel chassis to the Federal Manufactured Home Construction and Safety Standards (HUD Code), which took effect on June 15, 1976. Homes built prior to this date are classified as mobile homes and are ineligible for GSE financing. Modular homes, by contrast, are constructed off-site to state and local building codes (IRC) and are appraised on Form 1004, not Form 1004C.

Mandatory Verification Requirements on Form 1004C

To be eligible for secondary mortgage financing, the appraiser must address the required documentation and available evidence for the following items, consistent with the applicable program:

1. HUD Certification Label (HUD Tag): A red metal plate affixed to the exterior siding on the rear left corner of each transportable section. The appraiser must record the certification label number for each section.
2. HUD Data Plate / Compliance Certificate: An interior paper document affixed by the manufacturer in a visible location (inside an electrical panel door, kitchen cabinet, or master bedroom closet). It details the manufacturer's name, serial numbers, date of manufacture, model designation, and geographic maps displaying the home's designed wind zone, roof load (snow) zone, and thermal comfort zone.
3. Permanent Foundation System: The home must be attached to a permanent structural foundation system compliant with the HUD Permanent Foundations Guide for Manufactured Housing. The lender and title professionals must establish legal real-property classification under applicable state and program requirements. The appraiser identifies relevant evidence and limitations without certifying a legal title conversion beyond the assignment and competence.

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Comprehensive Form Comparison

Missing manufactured-home labels or a data plate do not automatically establish that the home was never built to the HUD code. Report what is missing and follow the applicable process for acceptable verification, which can include recognized label or data-plate verification documentation. Foundation compliance may require a qualified engineer's evidence. Do not substitute an appraiser's visual impression for a required engineering or title determination.

A condominium appraisal is also distinct from a lender's project eligibility review. The appraiser analyzes relevant unit and project facts and their value effect; the lender determines loan and project eligibility under its applicable rules. A form field or available HOA document does not by itself complete every project underwriting requirement.

Source: UAD 3.6 implementation timeline.