Why This Matters for Your Home Purchase
When you apply for a mortgage, your lender orders an appraisal to confirm the home's value supports your loan amount. Fannie Mae sets strict rules about which appraisal forms lenders can use based on your property type and loan details.
The appraisal type affects your timeline and costs. A desktop appraisal might save you money and speed up closing, but it's only available in limited situations. A full interior inspection takes longer but works for almost any property.
Understanding these rules helps you set realistic expectations. If your lender initially planned a desktop appraisal but discovers your property needs upgrades or has condition issues, they'll need to order a new appraisal with an interior inspection. This adds time to your loan process.
Desktop Appraisals: The Fastest Option with Strict Limits
Desktop appraisals (Form 70D) let appraisers value your home using public records, MLS data, and prior appraisals without visiting the property. This saves time and money, but Fannie Mae severely restricts when lenders can use them.
Your loan must meet all these requirements for a desktop appraisal:
- Purchase transaction only (no refinances)
- Single-family primary residence only
- Maximum 90% loan-to-value ratio
- Must receive an "Accept" recommendation from Fannie Mae's automated underwriting system
Say you're buying a $400,000 home with a $320,000 loan (80% LTV). If the automated system approves your loan and the property is a single-family home you'll live in, your lender might order a desktop appraisal.
Several property types automatically disqualify you from desktop appraisals. These include condominiums, manufactured homes, properties under renovation, and homes bought from lenders or government entities.
When Desktop Appraisals Must Be Upgraded
Even if your loan initially qualifies for a desktop appraisal, the appraiser might discover issues that force an upgrade to a full inspection (Form 70).
The appraiser must upgrade if they can't find enough reliable data about the home's interior and exterior features. This happens when public records show different square footage than the MLS listing, or when room counts don't match across data sources.
Properties with serious condition issues also require upgrades. If the sales contract or other documents indicate the home has a condition rating of C5 (poor) or C6 (very poor), or quality rating of Q6 (very poor), the appraiser must inspect the property in person.
Homes undergoing renovation automatically trigger an upgrade requirement. The appraiser needs to see the current condition firsthand rather than rely on outdated records.
Hybrid Appraisals: A Middle Ground Approach
Hybrid appraisals (Forms 70H and 465H) split the work between a property data collector and a licensed appraiser. The data collector visits your home to take photos and measurements, then sends this information to an appraiser who completes the valuation remotely.
Your lender can only use hybrid appraisals if Fannie Mae's automated system specifically approves this option for your loan. The system considers factors like your credit score, down payment, and the property's location and type.
The property data collector must be qualified and trained. They might be a real estate agent, home inspector, insurance inspector, or other approved professional. The appraiser identifies this person in the final report.
Hybrid appraisals work for single-family homes and condominiums but not for manufactured homes, 2-4 unit properties, or properties under construction. They also can't be used for renovation loans or construction-to-permanent financing.
Exterior-Only Appraisals: Limited to Updates Only
Exterior-only appraisals (Forms 2055 and 466) let appraisers value properties by inspecting only the outside and using data sources for interior details. However, Fannie Mae restricts these to appraisal updates or second opinions, not original purchase or refinance appraisals.
You might encounter an exterior-only appraisal if your lender needs an updated value after your original appraisal expires, or if they want a second opinion on a questionable valuation.
The appraiser must upgrade to a full interior inspection if they can't see the property improvements from the street, if data sources conflict significantly, or if the exterior inspection reveals condition problems.
New construction properties always require interior inspections. The appraiser needs to verify that construction is complete and meets quality standards.
Property-Specific Form Requirements
Different property types require specific appraisal forms regardless of inspection method. Single-family homes use Form 70 for full inspections, while condominiums require Form 465. Manufactured homes always use Form 70B, even when located in condominium projects.
For manufactured homes in condo projects, the appraiser must inspect both the home and the condominium project. They complete Form 70B for the home and attach the project information section from Form 465 as an addendum.
Two-to-four unit properties use Form 72. If the property includes an accessory dwelling unit (ADU), the appraiser counts it as an additional unit in their analysis.
Cooperative share loans require Fannie Mae Form 2090, which differs from standard appraisal forms because you're buying shares in a corporation rather than real estate directly.
Common Upgrade Triggers That Delay Closing
Several situations force appraisers to upgrade from limited inspections to full interior and exterior inspections. Data conflicts top the list - when public records, MLS listings, and other sources show different information about square footage, room counts, or property features.
Properties with apparent deficiencies also trigger upgrades. If the appraiser notices foundation problems, roof damage, or other significant issues during an exterior inspection, they must inspect the interior to assess the full scope of problems.
Renovation projects always require interior inspections. Even minor ongoing work like kitchen updates can disqualify properties from desktop or exterior-only appraisals.
Properties with condition ratings of C5 or C6 (poor to very poor) or quality ratings of Q6 (very poor) automatically require full inspections. The appraiser needs to document these conditions thoroughly for the lender's risk assessment.
Required Documentation and Data Delivery
Lenders must submit specific data points to Fannie Mae's systems when delivering loans with certain appraisal types. Desktop and hybrid appraisals require additional Uniform Loan Delivery Dataset (ULDD) information beyond standard loan data.
For hybrid appraisals, lenders must retain the Property Data Report (PDR) in the loan file and submit it through Fannie Mae's Beyond ACE system. This ensures the complete appraisal record is available for quality control reviews.
The appraiser must identify the property data collector by name in hybrid appraisal reports and specify their professional category (appraiser trainee, real estate agent, home inspector, etc.). They also must report the exact date of the property data collection.
All appraisal forms must use the Uniform Appraisal Dataset (UAD) standards for conventional loans. This standardizes how appraisers report property characteristics, making the data more reliable for automated valuation systems.
References
For the official guidelines, see 5604.1: Appraisal report forms, PDRs and inspection types in the Fannie Mae Selling Guide.
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Original Freddie Mac Guideline Text
Bulletin 2025-7
, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may submit to the Uniform Collateral Data Portal
®
appraisal reports that use UAD 3.6 before the mandatory effective November 2, 2026 version of this section.
This section contains:
Appraisal report forms and the PDR by property type and inspection/data collection type
Form 70D, Uniform Residential Appraisal Report (Desktop)
Form 70H, Uniform Residential Appraisal Report (Hybrid), and Form 465H, Individual Condominium Unit Appraisal Report (Hybrid)
ACE+ PDR upgrade requirements
Form 2055, Exterior-Only Inspection Residential Appraisal Report, and Form 466, Exterior-Only Inspection Individual Condominium Unit Appraisal Report, upgrade requirements
Appraisal report review forms by property type and inspection type
Statement of Assumptions and Limiting Conditions and Appraiser’s Certification
For each Mortgage transaction that requires an appraisal report or a PDR, the Mortgage file must contain an appraisal report or PDR that meets Freddie Mac’s requirements to evidence that the Mortgaged Premises is acceptable collateral. All appraisal reports and PDRs require a physical inspection of the property, which includes an on-site visual inspection, except for desktop appraisals. The Seller may provide an appraisal report that exceeds the minimum collateral assessment requirement indicated by the Last Feedback Certificate provided the eligibility requirements for the selected appraisal type are met.
(a)
Appraisal report forms and the PDR by property type and inspection/data collection type
Appraisals reported on the following forms must be completed using the UAD in accordance with Appendix D, UAD Field-Specific Standardization Requirements, of the Uniform Appraisal Dataset Specification (“UAD Specification”) when reporting an appraisal for a conventional Mortgage (see
):
Form 70, Uniform Residential Appraisal Report
Form 465, Individual Condominium Unit Appraisal Report
Form 466
Note: Freddie Mac does not require the UAD to be used for appraisals reported on
Form 70B
or
72
or
Fannie Mae Form 2090, Individual Cooperative Interest Appraisal Report
(opens in new window)
. However, these forms may be completed using the standards contained in the UAD Specification to the extent those standards are applicable.
The following tables identify the appraisal report form or PDR to use based on the inspection/data collection type:
(i)
Appraisal report forms by property type and inspection/data collection type
Appraisal report forms by property type and inspection/data collection type
1-unit property, including:
Excluding:
:
May be used for a Detached Condominium Unit if the appraiser includes information about the project and its condition
May not be used for an appraisal of a Manufactured Home or an attached Condominium Unit
On-site interior and exterior property data collection using the
(opens in new window)
:
May be used for a Detached Condominium Unit if the appraiser includes information about the project and its condition
May not be used for an appraisal of a Manufactured Home or an attached Condominium Unit
(b)
below for requirements for using
Form 70D
.
:
May only be used for an appraisal update or a subsequent opinion of market value
May be used for a Detached Condominium Unit if the appraiser includes information about the project and its condition
The form may not be used for an appraisal of a Manufactured Home or a unit in an attached Condominium Project
(d)
below for the conditions when
Form 2055
must be upgraded to
Form 70
.
Condominium Unit, including:
Form 465
On-site interior and exterior property data collection using the UPD
Form 466
may only be used for an appraisal update or a subsequent opinion of market value.
(d)
below for the conditions when
Form 466
must be upgraded to
Form 465
.
Manufactured Home, including:
Form 70B
must be used for all Mortgages secured by a Manufactured Home, including a CHOICEHome
®
When the Manufactured Home is located in a Condominium Project, the appraiser must inspect the project, complete the project information section of
Form 465
and attach it as an addendum to
Form 70B
2- to 4-unit property, including a 2- or 3-unit property with an ADU
Form 72
When used for a 2- or 3-unit property with an ADU, the ADU is included as an additional unit
Cooperative Share Loan, including:
(PDF 5mb opens in new window)
Any, as required by the original appraisal report
Interior and exterior inspection or exterior-only inspection
Section 5604.3
for information on appraisal updates and Section
5605.8
for information regarding completion reports.
Any, as required by the original appraisal report
Interior and exterior inspection or exterior-only inspection
Form 400, Warranty of Completion of Construction or Repairs/Alterations
Section 5605.8
for information regarding completion reports.
(ii)
PDRs forms by property type and data collection type
PDR forms by property type and data collection type
1-unit property, excluding:
Cooperative Share Loans
On-site interior and exterior property data collection using the UPD
This report is required when accepting an ACE+ PDR offer or to complete a hybrid appraisal report.
(b)
Form 70D
) is an appraisal assignment for which the scope of work does not include fieldwork by the appraiser. The appraiser relies on property tax records, multiple listing service information, past sales, prior appraisals and other data to complete the appraisal report.
(i)
Desktop appraisal requirements
A Mortgage delivered with a desktop appraisal must:
Be an Accept Mortgage
Be secured by a 1-unit Primary Residence
Be a purchase transaction Mortgage
Have a maximum loan-to-value (LTV) ratio of 90%.
Note: Mortgages originated with a desktop appraisal that have an LTV ratio higher than 90% (as calculated using the value obtained from the desktop appraisal) will be eligible for sale to Freddie Mac if the loan amount does not increase and all other eligibility requirements continue to be met, including the requirement that the LTV ratio calculated using the contract sales price is less than or equal to 90%. If the LTV ratio increases above 90% because of an increase in the loan amount, the appraisal report must be upgraded to an appraisal with an interior and exterior inspection (
Form 70
).
Be delivered with the ULDD Data Points described in the data delivery instructions in
(ii)
Mortgages that are ineligible for a desktop appraisal
The following Mortgages are not eligible for a desktop appraisal:
®
®
Mortgages secured by:
Mixed-use property
Property that is undergoing renovation or rehabilitation
Property acquired in a Non-arm’s Length Transaction
Property where the property owner at the time of sale (i.e., the property seller) is a lender or a government entity
Property subject to resale restrictions, excluding age-based resale restrictions
(iii)
Form 70D
upgrade requirements
The appraisal report must be upgraded to
Form 70
when one or more of the following conditions exists:
Third-party data sources do not provide sufficient information about both the interior and exterior physical characteristics of the subject property for the appraiser to develop a credible and adequately supported appraisal
There are significant discrepancies (e.g., room count, gross living area, size, condition) among available data sources that cannot be reconciled by the appraiser to develop a credible and adequately supported appraisal
The subject property is undergoing renovation or rehabilitation
Data sources used to develop the appraisal, including the sales contract, reflect the presence of physical deficiencies or adverse conditions that indicate the property has a condition rating of C5 or C6 or the quality rating is Q6. (Refer to
Section 5605.5(a)
for additional information related to property condition and quality of construction.)
(c)
Forms 70H
and
465H
(i)
Hybrid appraisal requirements
If the Mortgage is submitted to Loan Product Advisor
®
, the Last Feedback Certificate must indicate the Mortgage is eligible for a hybrid appraisal report.
Note: If the Last Feedback Certificate does not indicate the Mortgage is eligible for delivery with an appraisal reported on
Form 70H
or
465H
, but the Mortgage is eligible for automated collateral evaluation (ACE), ACE+ PDR or a desktop appraisal, the Seller may deliver the Mortgage with a hybrid appraisal report.
Each Mortgage must be delivered with the ULDD Data Points described in the data delivery instructions in
Section 6302.8(a)
.
Form 70H
or
465H
can be used for a hybrid appraisal report with a PDR. The appraiser may contact the property data collector to verify any information in the PDR and adjust that information, as necessary, to complete
Form 70H
or
465H
. (Refer to
Section 5603.6
for property data collector requirements and
Section 5604.2
for PDR exhibit requirements.)
The PDR must be retained in the Mortgage file and must be submitted to Freddie Mac through the
Beyond ACE application programming interface (bACE API)
(opens in new window)
.
When preparing a hybrid appraisal report, the appraiser must:
Analyze the information in the PDR and review the photographs
Identify the name of the property data collector in the body of the appraisal report
Report the effective date of the appraisal report as the date the appraiser developed the opinion of market value
Complete the Appraisal Assignment Type fields, located in the Additional Comments section of
Form 70H
or
465H
according to the requirements in the table below:
Subject Property Data Workforce
(e.g., select the applicable identifier to describe the data collector who completed the PDR)
(ii)
Ineligible Mortgages
The following Mortgages are not eligible for a hybrid appraisal report:
Mortgages secured by:
2- to 4-unit properties
Manufactured Homes, including CHOICEHomes
Proposed construction (i.e., the construction has not started and the description of construction to be completed is based on plans and specifications and/or similar documentation)
(iii)
Form 70
or
465
requirements
The appraiser must perform an interior and exterior inspection reported on
Form 70
or
465
when one or more of the following conditions exists:
The PDR does not provide sufficient information about both the interior and exterior physical characteristics of the subject property for an appraiser to develop a credible and adequately supported appraisal report
There are significant discrepancies (e.g., room count, living area, size, condition) among available data sources, including the PDR, that cannot be reconciled by the appraiser to develop a credible and adequately supported appraisal report
(d)
ACE+ PDR upgrade requirements
The Seller must analyze the information in the PDR and review the photographs. The Seller’s review of the PDR may reveal that the subject property is not eligible for ACE+ PDR or has characteristics that require the Seller to upgrade to an appraisal report on
,
70H
,
465
or
465H
or an appraisal report form applicable to the property type. Property characteristics or conditions that require a PDR to be upgraded to an appraisal include:
The building status is “Proposed” (not eligible for upgrade to a hybrid appraisal)
0 bedrooms above grade and/or 0 bathrooms above grade
A measured finished area above grade of less than 400 square feet
Mixed use property (i.e., altered or modified specifically to support or facilitate a non-residential or income-producing use)
(e)
Form 2055
or
466
upgrade requirements
An appraisal based on an exterior-only property inspection, reported on either
Form 2055
or
466
, must be upgraded to a
Form 70
or
465
, as applicable, when one or more of the following conditions exists:
Third-party data sources do not provide sufficient information about both the interior and exterior physical characteristics of the subject property for the appraiser to develop a credible and adequately supported appraisal
There are significant discrepancies (e.g., room count, gross living area, size, condition) among available data sources that cannot be reconciled by the appraiser to develop a credible and adequately supported appraisal
The appraiser is unable to view the property improvements from the street and/or an exterior-only inspection does not provide sufficient information to develop a credible and adequately supported appraisal
The subject property is new construction
The subject property is undergoing renovation or rehabilitation
Data sources used to develop the appraisal, including the sales contract, reflect the presence of physical deficiencies or adverse conditions that indicate the property has a condition rating of C5 or C6 or the quality rating is Q6. (Refer to
Section 5605.5(a)
for additional information related to property condition and quality of construction.)
The exterior-only inspection reveals apparent physical deficiencies or adverse property conditions
(f)
Appraisal report review forms by property type and inspection type
The following table lists the Freddie Mac appraisal review report forms and the applicable inspection types.
Appraisal report review forms by property type and inspection type
1-unit property
Form 1032, One-Unit Residential Appraisal Field Review Report
1-unit property
Form 1033, One-Unit Residential Appraisal Desk Review Report
2- to 4-unit property
Form 1072, Two- to Four-Unit Residential Appraisal Field Review Report
(g)
Statement of Assumptions and Limiting Conditions and Appraiser’s Certification
Modifications or deletions to the Statement of Assumptions and Limiting Conditions or to the Appraiser’s Certification, which are incorporated into each appraisal report form and the PDR, are not permitted; however, additional certifications that do not constitute material alterations to the report, such as those required by law or those related to the appraiser’s membership in an appraisal organization, are permitted.
