If you’re buying a home or refinancing, the appraisal can have a big influence on how smoothly your mortgage moves forward. It helps the lender evaluate the property supporting the loan, and questions about value or condition can affect the transaction.
Now, the way that information is reported is getting a major update.
Fannie Mae and Freddie Mac are transitioning to the Uniform Appraisal Dataset 3.6, usually called UAD 3.6, and a redesigned Uniform Residential Appraisal Report, or URAR. The goal is more consistent property information and a report that fits the home being evaluated.
For buyers, sellers, and real estate agents in Pennsylvania, here’s what matters—and what you should prepare for.
For years, the mortgage industry has used different appraisal forms for different property types and assignments. Under the redesign, those legacy forms and form numbers are being replaced by one dynamic reporting framework.
That framework can accommodate single-family homes, two- to four-unit properties, condos, manufactured homes, and co-ops. It also supports different appraisal methods, including traditional, exterior-only, desktop, and hybrid assignments when applicable.
The report’s sections change based on the property and the work performed. A straightforward single-family home and a property with an accessory dwelling unit may produce different-looking reports, even though both use the same framework.
Importantly, supporting a property type or appraisal method in the report does not automatically make it eligible for a particular mortgage program.
Source: Fannie Mae, April 2025 Appraiser Update.
The rollout is already underway. Broad production began January 26, 2026, and November 2, 2026 remains the UAD 3.6 mandate.
However, there is an important update to the original schedule.
On September 30, 2026, Fannie Mae and Freddie Mac announced a temporary exception for approved sellers that need more time to transition. Sellers granted an exception can submit new legacy UAD 2.6 reports through May 19, 2027.
Beginning May 20, 2027, new submissions must use UAD 3.6. Previously submitted legacy reports can be resubmitted through June 27, 2027, with UAD 2.6 retiring June 28, 2027.
This is a conditional exception, rather than a blanket postponement. Mortgage brokers and lenders that do not sell directly to Fannie Mae or Freddie Mac must coordinate with their investors.
For a buyer, the practical question is simple: Which appraisal format does the lender require for this loan? The answer should be confirmed early, especially during the transition.
Source: September 30, 2026 joint GSE announcement.
The redesigned framework captures more specific information about property features.
Examples include the estimated age of the roof; the update status and condition of individual kitchens and bathrooms; converted living areas; solar equipment and whether it is owned or leased; and features intended to reduce damage from natural disasters.
Accessory dwelling units and outbuildings also receive more detailed reporting, including separate measurements and relevant characteristics.
For homeowners, keeping records of improvements can help answer questions accurately. If you replaced the roof, renovated a bathroom, or installed solar panels, have the dates and supporting information available.
That does not mean every improvement adds its cost to the appraised value. Better documentation helps describe the property; the appraiser still has to evaluate how the market responds to its features.
Source: Joint GSE UAD 3.6 Inspection and Reporting Tips.
Fannie Mae’s update also explains the difference between a footprint sketch and a floor plan.
A footprint sketch documents dimensions and the calculations supporting the reported square footage. A floor plan also shows the interior layout, including rooms, walls, doorways, and stairs.
Under the cited requirements, floor plans are required for property data collections, hybrid appraisals, and desktop appraisals. Traditional appraisals also require a floor plan when the layout is atypical or functionally obsolete. Otherwise, a footprint sketch can be acceptable.
Both must be software-generated.
This deserves attention in areas with older homes, additions, converted spaces, and unusual layouts. Before listing or buying, ask how the reported square footage was determined. A number in a listing should not be treated as a guarantee that the appraisal will report the same area.
Source: Fannie Mae Selling Guide, Appraisal Report Forms and Exhibits.
Fannie Mae is also emphasizing consistent application of condition and construction-quality ratings.
A property must be rated on its own merits using the applicable definitions. Its rating should not simply reflect how it compares with nearby homes.
For example, being the nicest house on the block does not by itself establish a particular construction-quality rating. Condition and quality describe different characteristics, and renovations need to be evaluated in the context of the whole property.
The same principle applies to comparable properties and to descriptions of location and view.
Two homes can receive the same rating and still need a value adjustment because meaningful differences remain. The rating is one part of the analysis.
Source: Fannie Mae Selling Guide, Property Condition and Quality of Construction.
An appraisal relies heavily on comparable sales, but prices can change between the time a comparable goes under contract and the appraisal’s effective date.
Fannie Mae requires appraisers to analyze that period and determine whether a market-condition adjustment, often called a time adjustment, is warranted.
That analysis can support an upward adjustment, a downward adjustment, or no adjustment. The conclusion must be backed by evidence and explained.
For example, an older comparable in a rising market may require an adjustment. But a rising annual price trend does not automatically justify increasing every comparable: the relevant market may have been stable during that sale’s specific comparison period.
These expectations were already addressed in earlier guidance. They are not all new rules beginning with UAD 3.6.
For buyers and sellers, the takeaway is that comparable sales require context. An older sale price alone may not tell the full story about current value.
Source: Fannie Mae Selling Guide, Adjustments to Comparable Sales.
No. The report redesign is separate from the rules that determine whether a loan needs an appraisal.
Fannie Mae already offers valuation alternatives for certain eligible transactions. These include value acceptance, commonly called an appraisal waiver, and value acceptance plus property data.
A hybrid appraisal is different: an appraiser develops the appraisal using property information collected by another party.
Eligibility depends on the transaction and the applicable requirements. A redesigned report does not guarantee a waiver, a cheaper appraisal, or a faster closing.
Source: Fannie Mae Property Valuation resources.
You do not need to learn appraisal software to prepare for these changes. A few practical steps can help:
These steps cannot guarantee a particular value. They can help the people evaluating the property work with accurate information.
The appraisal process is becoming more detailed, and the transition makes early coordination especially useful.
At Barren Hill Mortgage, we help buyers and homeowners understand how property requirements fit into their financing options. Whether you are purchasing in Montgomery County, Bucks County, or elsewhere in Pennsylvania, we can help you understand what to expect before the appraisal is ordered.
Andrew Haff | NMLS #1979618
Barren Hill Mortgage LLC | NMLS #2825420
Take the first step toward your new home. Apply online or call Andrew for a personalized consultation.
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