What Is All the Buzz About the New Mortgage Appraisal Rules?
Every home has a story—and appraisers will soon have a new way to tell it.
I have been hearing a lot of buzz lately about the “new appraisal regulations” coming to home mortgages. Here is the short version of what buyers and sellers need to know.
Fannie Mae and Freddie Mac are introducing a redesigned residential appraisal system known as UAD 3.6. It becomes mandatory for all new appraisal reports submitted through their system beginning November 2, 2026.
This is primarily a change in how appraisers document and report information about a property. It does not create a new formula for determining a home’s value, and it does not mean every mortgage will require a traditional appraisal.
Instead of using several different appraisal forms, appraisers will use one flexible report that adapts to the property. Reports will be more structured and may contain additional photographs and more specific information about renovations, condition, construction quality, finished living areas, accessory structures and comparable sales.
One of the biggest changes is that the appraiser will separately evaluate the home’s exterior, interior and overall condition and quality. In other words, a beautifully renovated kitchen will not simply mask an aging roof or neglected exterior. Each part of the property will be documented on its own before the appraiser reaches an overall conclusion.
Square footage may also look different. The new report uses terminology aligned with the ANSI measurement standard and distinguishes between above-grade finished area, below-grade finished area and certain nonstandard finished spaces. As a result, the appraiser’s reported square footage may not match tax records, an older appraisal or a previous MLS listing. That difference is not necessarily an error—it may simply reflect how the space is measured and classified.
For buyers, very little should change. The lender will still order the appraisal, and the appraiser will still provide an independent opinion of value. Buyers should review the completed report and notify their lender if it contains a factual error or overlooks important information.
For sellers, preparation remains important. Before the appraisal, it is helpful to provide a concise list of major improvements, approximate completion dates, permits when applicable and a floor plan or professional measurement if one is available. This can be especially important with older or extensively renovated Williamsburg-area homes, where tax records do not always tell the whole story.
The new format may eventually make appraisal reports clearer and more consistent. However, it will not guarantee that an appraisal matches the contract price, and there may be a learning curve as lenders, appraisers and software providers make the transition.
One important clarification: the November 2, 2026 deadline applies to new appraisal reports submitted through the Fannie Mae and Freddie Mac system. Other loan programs may follow different schedules. FHA is preparing to use UAD 3.6, but its mandatory adoption date has not yet been announced.
If you are buying or selling a home in Williamsburg, James City County, York County or elsewhere in Virginia and have questions about how an appraisal may affect your transaction, I would be glad to help.
About the Author
John Womeldorf—Mr. Williamsburg is a full-time Virginia Realtor with Liz Moore & Associates and 25 years of experience helping buyers and sellers navigate real estate transactions. He writes about local real estate because informed buyers and sellers make better decisions—and because every home has a story.
Contact John Womeldorf—Mr. Williamsburg
Call or text: 757-254-8136
Email: John@MrWilliamsburg.com
Website: MrWilliamsburg.com
Brokerage: Liz Moore & Associates
Office locations: Williamsburg; Oyster Point/Newport News; Richmond/Short Pump; Kilmarnock; Virginia Beach; Northern Neck; and the Peninsula
This article provides general real estate information. Mortgage and appraisal requirements vary by lender and loan program.
Additional Information
● Fannie Mae: Uniform Appraisal Dataset
● Freddie Mac: UAD 3.6 Frequently Asked Questions