How Long Are Home Appraisals Good For?

Standard Appraisal Validity Periods

A home appraisal provides an unbiased professional opinion of a property’s market value, serving as a snapshot in time. Its validity period is an important consideration in real estate transactions, including buying, selling, or refinancing a home. While an appraisal offers a current assessment, its relevance can change as market conditions evolve or the property’s characteristics are altered.

Specific Validity Periods by Loan Type

There is not a universal expiration date for home appraisals, but rather a set of guidelines established by lenders, investors, and regulatory bodies. These guidelines determine how long an appraisal remains acceptable for a specific transaction. The typical validity periods vary depending on the type of loan being secured.

For conventional loans, the appraisal is valid for 90 to 120 days from the effective date of the appraisal report. Lenders may require a more recent appraisal if the closing is delayed beyond this period.

Federal Housing Administration (FHA) loans allow appraisals to be used for 120 days for purchase transactions. For refinance transactions, an FHA appraisal may be valid for up to 180 days. The FHA may shorten these validity periods in rapidly fluctuating markets to ensure current valuation.

Veterans Affairs (VA) loans have an appraisal validity period of 180 days from the date the Certificate of Eligibility (CVE) is issued. Market conditions can influence this timeframe, and lenders may require a new appraisal if the original valuation is outdated. For cash or private sales, while no formal expiration dates are mandated, an appraisal’s practical relevance diminishes over time as market conditions change.

Factors Affecting Appraisal Lifespan

An appraisal’s effective lifespan can be influenced by several factors, potentially shortening or extending its relevance beyond standard periods. Rapidly changing market conditions can quickly render an appraisal outdated. Significant appreciation, depreciation, or shifts in housing inventory may necessitate a new appraisal even if the original is within its validity period.

Changes to the property’s condition after the appraisal date also impact its accuracy. Significant damage, such as from a natural disaster, or major improvements like new additions or extensive renovations, would invalidate the original valuation, requiring a new assessment.

Individual lenders implement stricter internal policies, known as underwriting overlays, which can affect appraisal acceptance. These policies might require a more recent appraisal or review, especially if loan closing is significantly delayed. The original purpose of the appraisal also influences its acceptance; an appraisal for a purchase may not be acceptable for a refinance a year later, even without property changes.

Appraisal Updates and Re-certifications

When a full new appraisal is not immediately necessary, but an existing appraisal is nearing or has passed its expiration, an appraisal update can be used. Documented on Fannie Mae Form 1004D Part B or Freddie Mac Form 442, this involves a limited review by the original appraiser. It confirms the property’s value has not significantly changed and continues to meet minimum requirements. This update is used when loan closing is delayed and the original appraisal is expiring, or for construction loans needing a final inspection.

An appraisal re-certification of value, documented on Fannie Mae Form 1004D Part A or Freddie Mac Form 442, serves a different purpose. It involves the original appraiser confirming that specific conditions or requirements stipulated in the initial appraisal have been met. This might include verifying the completion of repairs, improvements, or construction work noted in the original report. This form focuses on fulfilling conditions rather than re-evaluating market value.

Neither an update nor a re-certification is sufficient in some situations, requiring a completely new appraisal. This is necessary if there have been significant market changes, substantial property alterations, or if the original appraisal report is too old to provide a reliable current valuation. The decision to accept an appraisal update, re-certification, or to demand a new appraisal rests with the lender and their underwriting standards.