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.
Why This Is the Correct Answer
More Valuation Questions
Example of economic obsolescence in real estate?
An appraiser receives a request to perform a retrospective appraisal as of a date five years in the past for estate tax purposes. Under USPAP, can the appraiser perform this assignment?
Who typically hires the appraiser in a real estate transaction?
Which appraisal report type do California lenders commonly rely on for single-family residence financing?
An appraiser's report must identify the intended use and intended users of the appraisal. Why does USPAP require this information?
- → Return of an investor’s investment is provided for through:
- → An appraiser has been asked to provide a restricted appraisal report instead of an appraisal report for a lending assignment. Under USPAP, what is the key difference between these two report options?
- → How often must a licensed appraiser complete continuing education courses that include USPAP updates to maintain their license?
- → Under USPAP, what is the purpose of the Competency Rule?
- → All of the following are one of the four important elements of value, except:
- → An appraiser keeps a workfile for every appraisal assignment. Under USPAP, how long must the appraiser retain the workfile after the report is issued?
- → Under the replacement cost approach of appraisal, an appraiser is least interested in:
- → The appraisal process which allocates a percentage of a property’s total value to the land and a percentage to the improvements is known as:
- → A trainee appraiser performed most of the field work for a residential appraisal, but the supervising appraiser signed the report. Under USPAP, who is responsible for the quality of the appraisal?
- → A property's value decreased because a noisy highway was built nearby. This is an example of: