Under federal law, which type of loan typically does NOT require a property appraisal?
Correct Answer
C) Transaction under $400,000 meeting certain criteria (1-4 family residential)
The appraisal threshold was raised to $400,000 for certain 1-4 family residential transactions. Below this threshold, lenders may use evaluations instead of full appraisals for transactions meeting certain criteria. FHA, VA, and other government-backed loans typically still require appraisals regardless of amount.
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