No, this isn’t a trick – and yes, you read the headline right.
For the first time since 1994, the Federal Reserve has approved an appraisal rule change. Certain home sales of $40,000 and under will soon not be required to have an appraisal.
This approved proposal increases the appraisal requirement from $250,000 to $400,000.
In a joint statement, federal agencies claim, “Given price appreciation in residential real estate transactions since that time, the change will provide burden relief without posing a threat to the safety and soundness of financial institutions.”
This approved proposal does not apply to all situations, however. Loans sold to or guaranteed by the Federal Housing Administration, Department of Housing and Urban Development, Department of Veterans Affairs, Fannie Mae, or Freddie Mac, are still requiring an appraisal.
Want more real estate news? Be sure to check out the rest of AmeriTitle’s Blog!