How long is a mortgage appraisal good for?

Fannie Mae's rules

Fannie Mae's Selling Guide (B4-1.2-04) says:

• The appraisal must be done within 12 months before the note date.
• If it's more than four months old at closing, the appraiser completes an update (Form 1004D) within the four months before closing, inspecting the outside and checking current sales.
• If the update shows the value declined, the lender orders a new appraisal. If not, the loan moves ahead.
• Desktop appraisals need a new appraisal once they're more than four months old.

FHA's rules

HUD's Handbook 4000.1 sets the initial appraisal validity at 180 days from the appraisal's effective date. If closing will be later, an FHA appraiser in good standing can update it, as long as the value hasn't declined and the home still meets HUD's property standards; the updated appraisal is then valid for one year from the original effective date. Most other FHA loan documents can't be more than 120 days old at closing.

When does this come up?

• New construction: building can take months, so an update or new appraisal is common. See buying from a builder.
• Delayed closings: title issues, repairs or a seller's move can push past a deadline.
• Changing lenders: see switching lenders after you apply.

Your pay stubs and bank statements also age out; Fannie Mae limits most credit documents to four months old at closing. See why lenders ask for updated documents.

What if the update shows a lower value?

Then a new appraisal is required, and the loan amount may need to change if the new value is lower. See if the appraisal comes in low.