Home Appraisals Are Changing Starting November 2026

If you’re buying, selling, or refinancing in Washington this fall or winter, there’s a behind‑the‑scenes change worth knowing about: starting November 2, 2026, Fannie Mae and Freddie Mac are requiring a completely redesigned appraisal report for conventional loans. It’s the biggest change to how appraisals are documented in decades—though, importantly, it doesn’t change how your home’s value is determined.

What’s changing

For as long as most of us have been in the business, appraisers have used a handful of standard forms—the familiar Form 1004 for a single‑family home, a 1073 for condos, and so on. Those forms are being retired and replaced with one dynamic report, built on a new data standard called UAD 3.6, that adjusts based on the property being appraised.

• One report instead of many forms. The new Uniform Residential Appraisal Report (URAR) expands or contracts depending on your property type and the assignment.
• “Gross living area” is going away. Instead of one square‑footage number, the report breaks your home into four separate figures: Finished Area Above Grade, Finished Area Below Grade, Unfinished Area Above Grade, and Unfinished Area Below Grade—all measured to the ANSI Z765 standard. A finished basement now gets reported on its own line rather than folded into—or left out of—the main total.
• More detail on ADUs, outbuildings, and site features. Guest houses, solar panels, and other property‑specific details now have dedicated fields rather than being mentioned in passing.
• Updated condition and quality ratings. The C and Q ratings appraisers use have more specific definitions under the new standard.

What isn’t changing

This is a reporting overhaul, not a valuation overhaul. The appraiser’s independent opinion of value still works the same way—based on comparable sales and market analysis. Your appraisal contingency language doesn’t change, and if your appraisal comes in low, your options are exactly what they’ve always been: renegotiate, challenge the value through a Reconsideration of Value, bring cash to closing, or walk away if your contract allows it.

Which loans this affects

• Conventional loans (Fannie Mae/Freddie Mac): required for appraisals submitted on or after November 2, 2026.
• FHA: optional adoption has opened, but no mandatory date has been announced yet.
• VA and USDA: no adoption timeline announced as of this writing.
• Jumbo or portfolio loans: follow each investor’s own requirements—ask your loan officer if you’re in this category.

One detail that trips people up: the deadline is based on when the appraisal is submitted to Fannie/Freddie’s system, not your contract date or the appraisal’s effective date. A home appraised in late October but submitted in November still needs the new format.

What this means for your closing timeline

Appraisers are learning new software and entering more data per assignment this fall, so it’s reasonable to expect a short adjustment period. At the same time, the shift toward more digital tools and trained data collectors—especially in busy or rural markets—may actually help some appraisals move faster and keep closings on track. Either way, if you’re under contract with a closing date near November 2, it’s worth talking to your loan officer early about your appraisal timeline so there are no surprises.

A longer or unfamiliar‑looking report isn’t a red flag—it usually just reflects the property’s complexity and the new format, not a problem with the file.

A few things to have ready

• Know your real square footage breakdown. There’s no longer one headline number—expect four figures, measured to the ANSI Z765 standard, that may not match what’s on your MLS sheet or county record.
• If you have a finished basement, be ready to see it reported separately rather than combined into your total living area.
• If you have an ADU, addition, or outbuilding, have details on hand—permits, square footage, when it was built.
• Keep records of permits, upgrades, and additions—HVAC, roof, guest house, anything that’s changed. This feeds directly into the appraiser’s condition rating.
• Double‑check your listing details are accurate. Appraisers will check photos and public records against the new report’s more detailed fields.
• Don’t forget the basics. The usual pre‑appraisal safety checklist—CO detectors, water heater straps, working smoke alarms—still applies and can still hold up closing if missed.

Questions about how this affects your specific purchase or refinance timeline? I’m happy to walk you through what to expect. Let’s talk →

Frequently asked questions

Will this change what my home appraises for?

No. This changes how appraisal data is collected and reported, not how the appraiser develops their opinion of value.

Does this affect my FHA or VA loan?

Not yet. The November 2, 2026 mandate applies to conventional loans sold to Fannie Mae and Freddie Mac. FHA has opened optional adoption but hasn’t set a mandatory date, and VA and USDA haven’t announced timelines.

What if my appraisal is done before November 2 but submitted after?

It still needs to use the new format. The requirement is based on the submission date, not the appraisal’s effective date or your contract date.

Read: Appraisal Guide for Washington Homebuyers