Last Updated: October 2026
New Home Appraisal Rules for 2026-2027: What Arizona Buyers and Sellers Need to Know
The new appraisal rules 2026 are already changing how Arizona homes and condos get valued for a mortgage. Fannie Mae and Freddie Mac are switching to a brand-new appraisal report on November 2, 2026, more conventional buyers are being offered value acceptance instead of an appraisal, and FHA buyers lost their own appraisal appeal in 2025. This guide to the new appraisal rules 2026 covers what changed, what did not, and what to do if your appraisal comes in low.
Quick answer.
- November 2, 2026: new appraisal reports sent to Fannie Mae and Freddie Mac must use the redesigned URAR (UAD 3.6). A temporary exception for some companies ends June 28, 2027.
- Value acceptance (formerly “appraisal waivers”) now reaches conventional purchases up to 90% loan-to-value, or up to 97% with an inspection, on homes under $1,000,000.
- FHA rescinded its borrower-initiated appraisal appeal on March 19, 2025; a July 11, 2026 federal law requires a consumer process that FHA has not issued yet.
- Not changed: cash purchases, your free appraisal copy, county assessor values and your contract contingencies.
Jump to a section
Key dates for the new appraisal rules 2026 and 2027
Here is the timeline for the new appraisal rules 2026 and 2027, using only dates published by the agencies themselves.
| Date | What happens | Source |
|---|---|---|
| March 19, 2025 | FHA rescinds its borrower-initiated reconsideration of value (Mortgagee Letter 2025-08), effective immediately | HUD ML 2025-08 |
| September 8, 2025 | UAD 3.6 limited production begins at Fannie Mae and Freddie Mac | Fannie Mae UAD page |
| October 1, 2025 | Interagency quality-control rule for automated valuation models takes effect | Federal Register, 89 FR 64538 |
| January 26, 2026 | UAD 3.6 broad production begins | Fannie Mae UAD page |
| July 11, 2026 | 21st Century ROAD to Housing Act (Public Law 119-101) becomes law, with appraisal provisions in Sections 403 and 704 | Public Law 119-101 (govinfo) |
| October 1, 2026 | FHA opens optional UAD 3.6 submissions (FHA INFO 2026-23); no FHA mandatory date has been set | HUD FHA INFO |
| November 2, 2026 | UAD 3.6 mandatory for new appraisal reports submitted to the GSEs on or after this date (based on the submission date) | Fannie Mae UAD page |
| November 2, 2026 to February 28, 2027 | Temporary exception: companies that requested it may still submit the legacy UAD 2.6 format | Fannie Mae LL-2026-08, Freddie Mac Bulletin 2026-J |
| March 1 to May 19, 2027 | Legacy reports still accepted with reduced functionality | Fannie Mae LL-2026-08 |
| May 20 to June 27, 2027 | New legacy submissions rejected; only resubmissions of earlier legacy reports allowed | Fannie Mae LL-2026-08 |
| March 8, 2027 | Deadline for HUD guidance letting state-licensed appraisers do FHA appraisals (within 240 days of enactment; effective no later than 180 days after it is issued). A GAO report on a public appraisal database is due the same day. | ROAD Act Secs. 403 and 704 |
| June 28, 2027 | Legacy UAD 2.6 support ends completely | Fannie Mae LL-2026-08 |
The new URAR appraisal form: what actually changes
The headline item in the new appraisal rules 2026 is the redesigned Uniform Residential Appraisal Report, delivered in a data format called UAD 3.6. Fannie Mae and Freddie Mac are replacing the legacy appraisal forms (the 1004 for single-family homes, the 1073 for condos, the 1025 for 2 to 4 units, the exterior-only 2055, the manufactured home form and others) with one dynamic report. Form numbers go away. The property’s data decides which sections appear, according to the joint GSE UAD 3.6 FAQ.
- One report for every scope. Traditional, hybrid, desktop and exterior appraisals all use the same structure.
- Same rating scales, new definitions. Condition (C1 to C6) and Quality (Q1 to Q6) scales are unchanged, but the definitions were rewritten and separate interior and exterior ratings were added.
- More detail. Kitchens, baths and flooring get component-level update status, and accessory dwelling units (ADUs) get more detailed reporting.
- No General Addendum. Comments sit inside each section.
The mandate keys off the date the appraisal is submitted to the GSEs’ portal, not your loan application date, per Fannie Mae. If your purchase is in process around November 2, 2026, ask your loan officer which format your appraisal will use.
New appraisal rules 2026 by loan type
Conventional loans (Fannie Mae and Freddie Mac)
Conventional buyers see the most change under the new appraisal rules 2026:
- UAD 3.6 is mandatory for new submissions on or after November 2, 2026.
- Value acceptance expanded. On October 28, 2024, FHFA, Fannie Mae and Freddie Mac announced that the maximum loan-to-value for purchase waivers on primary residences and second homes rose from 80% to 90%, and the inspection-based version rose from 80% to the program maximum (up to 97%). Freddie Mac’s change applied to submissions on or after February 24, 2025; Fannie Mae’s began in Q1 2025.
- New names. Fannie Mae retired the term “appraisal waiver” in favor of “value acceptance” on September 3, 2025, and Freddie Mac shortened “ACE appraisal waiver” to “ACE” on February 4, 2026, with no requirement changes (Freddie Mac bulletins).
- Price cap. Fannie Mae value acceptance is unavailable at $1,000,000 or more (Fannie Mae value acceptance), and Freddie Mac ACE is unavailable above $1,000,000 (Freddie Mac Guide 5602.3).
- Desktop and hybrid appraisals. Fannie Mae desktop appraisals are limited to one-unit, principal residence purchases at 90% loan-to-value or less, and condos are excluded (Selling Guide B4-1.2-02). Hybrid appraisals use a trained third party to collect interior and exterior data, then a licensed or certified appraiser completes the value; one-unit homes including condos qualify (Selling Guide B4-1.2-03).
FHA loans
For FHA buyers, the new appraisal rules 2026 are mostly about process:
- Borrower appeal rescinded. Mortgagee Letter 2025-08 (March 19, 2025) rescinded FHA’s borrower-initiated reconsideration of value. Today, the underwriter may request a reconsideration.
- QC field reviews optional. Mortgagee Letter 2026-10 (June 23, 2026) made appraisal field reviews in quality control optional.
- UAD 3.6 optional. FHA INFO 2026-23 (October 1, 2026) opened optional UAD 3.6 submissions; FHA has not set a mandatory date (HUD FHA INFO).
- Coming: licensed appraisers. ROAD Act Section 403 lets appraisers who are “certified or licensed” in the property’s state do FHA appraisals once HUD implements it.
Thinking about an FHA purchase? See our Arizona FHA loans guide.
VA loans
VA buyers see the new appraisal rules 2026 mainly in property requirements:
- Minimum Property Requirements update announced. VA announced updated minimum property requirements on June 25, 2026 (VA News). The announced updates include removing the full radon requirement, revising paint standards, streamlining detached improvements, updating non-vented heater guidance and adjusting appraisal fees in select regions.
- Tidewater unchanged. If a purchase appraisal looks like it will come in low, the appraiser gives the designated contact 2 business days to send more sales data (VA Pamphlet 26-7).
USDA loans
USDA changes under the new appraisal rules 2026 are smaller:
- Procedure Notice 640 (May 5, 2025) clarified appraisal and dispute handling for the Direct program and set a 7-business-day window for the administrative appraisal review (USDA PN 640).
- Delegated underwriting rule. A final rule for the Guaranteed program took effect June 17, 2026, with implementation on September 28, 2028; delegated loans are not subject to USDA administrative appraisal reviews (Federal Register 2026-05387).
Buying in a rural part of the state? Our Arizona USDA loans guide explains the program.
What the new appraisal rules 2026 DO and do NOT affect
What this DOES affect
- The appraisal report format and the data the appraiser collects
- Whether some conventional purchases need an appraisal at all (value acceptance)
- How FHA, VA and USDA handle appraisal reviews and disputes
- Quality controls at companies that use automated valuation models
What this does NOT affect
- Cash purchases. No federal rule requires an appraisal for a cash purchase.
- Jumbo and non-QM loans. These sit outside the GSE mandate and follow their own program rules.
- Market value. No rule raises or lowers values. The rating scales are unchanged, and value is still the appraiser’s opinion based on the market.
- Your free appraisal copy. The right to a copy under Regulation B, 12 CFR 1002.14 was not changed.
- County assessor values and property taxes. These are a separate process.
- Contract contingencies. Appraisal contingencies come from your purchase contract, not federal rules.
FHA’s appraisal appeal vs. the conventional ROV process
A reconsideration of value (ROV) is a formal request to have the appraiser look again at specific data. The new appraisal rules 2026 treat it very differently by loan type.
| Loan type | Who can start a reconsideration | Key limits |
|---|---|---|
| Conventional | The borrower, through the loan officer | One borrower ROV per appraisal, up to five alternative comparable sales, no ROV after closing (Fannie Mae Selling Guide) |
| FHA | The underwriter (borrower process rescinded March 19, 2025) | Borrowers can raise concerns through their loan officer (ML 2025-08) |
| VA | Tidewater before the report is final, then the Veteran after the Notice of Value | 2 business days for Tidewater data; VA reviews an ROV within 5 business days (VA Pamphlet 26-7) |
The 21st Century ROAD to Housing Act, Section 704, now requires USDA, VA, FHA and FHFA to maintain a consumer-initiated reconsideration of value process for federally backed loans. The law sets no deadline for that piece, and HUD said in FHA INFO 2026-18 (August 12, 2026) that ROAD Act provisions are under evaluation.
What to do if your appraisal comes in low
Even under the new appraisal rules 2026, a low value is not the end of the road. Take these steps in order:
- Get your free copy. It is your right under Regulation B.
- Check the facts first. Square footage, bed and bath count, pool, garage, lot and upgrades.
- Gather better comps. Up to five closed comparable sales with their data sources, the format the GSEs use.
- Submit through your loan officer before closing. Conventional loans allow one borrower ROV per appraisal.
- Watch your contract deadlines. An ROV does not pause them. Your options may include a price adjustment, covering the gap, or cancelling as your contract allows.
For sellers, the new appraisal rules 2026 do not change the basics. Sellers can give the appraiser a list of upgrades and recent comparable sales through their agent, but appraiser-independence rules mean nobody should pressure an appraiser on value. A dedicated buyer’s agent or listing agent handles this every week.
The Arizona angle for buyers and sellers
These are federal rules, so they apply the same way statewide, from Yuma to Flagstaff. Here is how the new appraisal rules 2026 show up in Arizona transactions:
- Condo buyers. Value acceptance can include one-unit condos, the new URAR replaces the separate 1073 condo form, and Fannie Mae desktop appraisals exclude condos. Condo project approval is a separate issue; see our Arizona condo loan rules guide.
- New construction buyers. Fannie Mae offers value acceptance on a recently built home only when a prior “as is” appraisal exists in its database, and the new report records new construction as “Fully Updated.” Our Arizona new construction buyer guide covers the rest of the process.
- Buyers offered value acceptance. It saves the appraisal fee and time, but no independent appraiser checks the price, so your contract price becomes the accepted value. Pair it with a thorough home inspection. If an appraisal is obtained, Fannie Mae’s offer can no longer be used.
- Appraisal contingencies. If no appraisal is ordered, a contingency tied to an appraisal may never be triggered. Read your contract wording with your agent.
- Property taxes. An appraisal does not change your county assessor’s value. Assessment appeals go through your county assessor.
Planning a purchase? Start with pre-approval so your loan officer can tell you early which appraisal path your file is likely to take. Selling? Before you list under the new appraisal rules 2026, get a realistic number with our Arizona home value tool.
Myths vs. facts about the new appraisal rules 2026
| Myth | Fact |
|---|---|
| The new appraisal rules 2026 get rid of home appraisals. | Most purchase loans still need one. What expanded is optional value acceptance on some conventional loans, decided file by file. |
| A waiver means a computer appraised the home at a higher value. | With value acceptance, the contract price is accepted as the value. No appraiser opinion is produced. |
| The new appraisal form will lower home values. | UAD 3.6 changes the report format and data. The rating scales are unchanged. |
| If the appraisal is low, the deal is dead. | You can request a reconsideration of value, renegotiate, cover the gap or use your contract options. |
| FHA borrowers can file their own appraisal appeal. | FHA rescinded that in March 2025. A July 2026 law requires a consumer process, but FHA has not issued it yet. |
| You have to pay to see your appraisal. | Federal rules require a free copy for first-lien home loans. |
| There is a brand-new 2026 USPAP. | The 2024 USPAP edition is still current (The Appraisal Foundation). |
| Appraisal bias protections were repealed. | FHA, USDA and VA rescinded some PAVE-era policies, but HUD states the Fair Housing Act and Equal Credit Opportunity Act will continue to be enforced (HUD news). |
New appraisal rules 2026: frequently asked questions
What are the new appraisal rules 2026 buyers should know about?
The biggest one is the new appraisal report. Fannie Mae and Freddie Mac require the redesigned Uniform Residential Appraisal Report (UAD 3.6) for new appraisal submissions on or after November 2, 2026, with a temporary opt-in exception for some companies that ends June 28, 2027. Value acceptance (formerly called appraisal waivers) also expanded for conventional purchases, and FHA rescinded its borrower-initiated appraisal appeal in March 2025.
What is the new URAR appraisal form?
It is a single, dynamic appraisal report that replaces the legacy forms, including the 1004, the 1073 condo form and the 1025 for 2 to 4 units. The property’s data decides which sections appear. The condition and quality rating scales are unchanged.
Do I need an appraisal to buy a house in Arizona in 2026?
Usually, yes. Some conventional purchases receive a value acceptance offer with no appraisal, up to 90% loan-to-value, or an inspection-based option up to 97%, on homes priced under $1,000,000. FHA and VA purchases still require appraisals.
What is an appraisal waiver or value acceptance?
It is an offer from Fannie Mae’s or Freddie Mac’s automated underwriting system to accept the contract price as the value on an eligible loan, without an appraisal. Fannie Mae now calls it value acceptance, and Freddie Mac calls it ACE. It is an offer on a specific loan file, not a guarantee.
Can I get value acceptance on a condo?
Value acceptance can include one-unit condos when the loan is otherwise eligible. Fannie Mae’s desktop appraisal option excludes condos, while its hybrid appraisal option allows them.
What should I do if my appraisal comes in low?
Get your free copy of the appraisal, check it for factual errors, gather up to five better closed comparable sales, and ask your loan officer to submit a reconsideration of value before closing. At the same time, track the appraisal contingency deadlines in your purchase contract.
Can I appeal an FHA appraisal?
Not directly today. FHA rescinded its borrower-initiated reconsideration of value on March 19, 2025, and now the FHA underwriter may request a reconsideration. A federal law enacted July 11, 2026 requires a consumer-initiated process for federally backed loans, but FHA has not issued implementing guidance yet. You can still raise concerns through your loan officer.
Am I entitled to a free copy of my appraisal?
Yes. For a first-lien home loan, federal rules require a free copy of all appraisals and written valuations, delivered promptly when completed or at least 3 business days before closing, whichever is earlier. You can waive the timing, and the right applies even if the loan is denied or withdrawn.
Do the new appraisal rules 2026 change my property taxes?
No. Mortgage appraisals and Arizona county assessor values are separate processes. None of these federal changes touch assessed values or property tax appeals.
Get help with your appraisal questions
The new appraisal rules 2026 are easier to handle with a full-time agent and a good loan officer on your side. Call or text (480) 490-4865, or use the form below.
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