What form does Fannie Mae want a modular appraisal on?

What form does Fannie Mae want a modular appraisal on?

Fannie Mae, the government-sponsored enterprise that provides liquidity to the housing market, requires a modular appraisal to be submitted on their standardized form: the Uniform Residential Appraisal Report (URAR). This form is commonly referred to as Form 1004, and it is the industry standard for residential real estate appraisals.

Appraisers must use this form when conducting an appraisal for a Fannie Mae loan, as it provides the necessary information to assess the value of the property and ensure it meets Fannie Mae’s guidelines.

What are some common FAQs related to modular appraisals for Fannie Mae?

1. Is a modular appraisal the same as a traditional appraisal?
A modular appraisal follows the same guidelines and standards as a traditional appraisal. The only difference is that it is submitted on Fannie Mae’s URAR form.

2. Why does Fannie Mae require a modular appraisal on Form 1004?
Fannie Mae uses the URAR form to ensure consistency and accuracy in the appraisal process. This helps them make informed decisions when underwriting loans.

3. Can a different form be used for a modular appraisal?
No, Fannie Mae specifically requires the use of Form 1004 for modular appraisals.

4. What information is included in a modular appraisal on Form 1004?
The URAR form includes details about the property, comparable sales data, the appraiser’s analysis and valuation, and any other relevant information.

5. Who completes the modular appraisal on Form 1004?
A licensed appraiser with knowledge of the local real estate market and experience in conducting appraisals completes the modular appraisal on Form 1004.

6. How long does it take to complete a modular appraisal on Form 1004?
The time to complete a modular appraisal can vary depending on the complexity of the property and market conditions, but it typically takes a few days to a week.

7. Are there specific guidelines appraisers must follow when completing a modular appraisal on Form 1004?
Yes, appraisers must adhere to Fannie Mae’s guidelines and standards when completing the URAR form. This ensures the appraisal is accurate and reliable.

8. Can a modular appraisal on Form 1004 be used for other types of loans?
While Fannie Mae requires the use of Form 1004 for their loans, other lenders may have their own appraisal requirements. It is best to check with the lender to see if a modular appraisal on Form 1004 is acceptable.

9. What happens if the modular appraisal on Form 1004 comes in lower than the purchase price?
If the appraisal comes in lower than the purchase price, the lender may require the buyer to either renegotiate the price, come up with additional funds, or the loan may be denied.

10. Can a modular appraisal on Form 1004 be used for refinancing?
Yes, Fannie Mae’s Form 1004 can be used for both purchase and refinance transactions. The appraisal helps determine the value of the property for loan purposes.

11. Are there any specific requirements for appraisers who complete modular appraisals on Form 1004?
Appraisers must be licensed or certified in the state where the property is located and have experience in conducting residential real estate appraisals.

12. What should borrowers know about the modular appraisal process on Form 1004?
Borrowers should be prepared for an appraiser to visit their property and conduct a thorough inspection to assess its condition and value. It is an important step in the loan process.

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