Expiration of Appraisals

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Chapter 1
Appraisal & Property Requirements
Page 1-06

FHA appraisals on existing properties over one (1) year old are valid for six (6) months with no extension period.

Proposed construction, under construction, and existing properties (less than one (1) year old) is valid for twelve (12) months. A 12 month extension may be granted for lots on which construction began prior to the previous expiration.

Appraisals on Section 203(k) loans are valid for a period of twelve (12) months.

Master Appraisal Reports (MARS) are valid for 12 months. These may be extended up to 12 (twelve) additional months for lots on which construction has started. Requests for extensions must be received by the underwriter prior to the commitment expiration date. There is no grace period allowed for this type of extension. The appraisal and value of alternates must be updated prior to the extension being granted.

The date of the appraisal is the date the property was inspected by the appraiser. Validity period runs from that date.

For information on the extension of the Firm Commitment see HUD handbook 4000.2.