As of September 1st, appraisals are going to look a bit
different. Freddie Mac & Fannie Mae have been warning for the last
year or so that they were creating a uniform set of “codes” that will
be used by all appraisers, nationwide. Freddie & Fannie have
implemented the new codes as of 9/1/11. FHA just announced that they are
delaying implementation until 1/1/12.
While most of the changes involve changing the written
explanations to codes, here are 6 of them that you will
definitely want to know about.
Code – Instead of saying 2.5 bathrooms, the appraiser will now say 2.1 bathrooms.
The figure to the left of the decimal means full bathrooms and the numbers to
the right of the decimal point is the amount of 1/2 baths. So the number
3.4 means there are 3 full and 4 half-baths.
Rating Code – You’ll no longer see “good, average, or poor”
ratings. There will now be codes from C-1 to C-6 being the worst and you
will probably not be able to finance a C-6 rated property.
Rating Code – This basically applies to new construction, either a new home or
an addition to an existing home. The codes will be Q-1 to Q-6.
of Home Code – Appraisers can no longer just say that the home is
“single-story or 2 story”. They must specify the type of design
like” Colonial, Contemporary, Victorian, Farmhouse, Ranch, Cottage, etc…
Codes – There are 60 “fields” that have changed that have initials
instead of descriptions, which are included in the attached “Uniform
Appraisal Dataset Codes Chart”
Information – Appraisers will also be required to report the square footage of
basements, regardless if it is finished or not.
Courtesy of Julie C. Nichols