FHA Gives Lenders, Borrowers More Time to Use Appraisal Reports
The Federal Housing Administration (FHA) on Tuesday published Revised Appraisal Validity Periods guidance that extends the initial appraisal validity period from 120 days to 180 days and the appraisal update validity period from 240 days to one year for Single Family Title II forward mortgage programs.
These changes align FHA appraisal validity periods with industry practices, making it easier for lenders to manage appraisal validity while potentially reducing appraisal costs for mortgagees and ultimately, borrowers seeking FHA-insured mortgage financing. The guidance applies to case numbers assigned on or after June 1, 2022.
The appraisal validity period establishes the maximum time an appraisal report may be used for an FHA-insured mortgage. This also includes the time mortgagees can utilize an appraisal update to extend the initial appraisal validity period.
The updates highlighted in this guidance will be incorporated in a future version of the Single Family Housing Policy Handbook.
Latest from NAHBNow
Safety
Dec 12, 2025
Preventing Cold, Flu and COVID Illnesses on Jobsites Starts with a PlanIn the construction industry, working outdoors may appear to create less risk for catching a cold, flu, and COVID-19, but it’s crucial to understand that these illnesses can still spread while working in close proximity in any conditions.
Housing Finance
Dec 11, 2025
FHA Announces Forward Mortgage Loan Limits for 2026The Federal Housing Administration (FHA) today announced its 2026 Nationwide Forward Mortgage Loan Limits, which provides the maximum mortgage loan limits for single-family homes that are insured by the FHA.
Latest Economic News
Economics
Dec 11, 2025
Homeownership Rate Inches Up to 65.3%The latest homeownership rate rose to 65.3% in the third quarter of 2025, according to the Census’s Housing Vacancy Survey (HVS).
Economics
Dec 10, 2025
No Risk-Free Path: Fed Eases Monetary PolicyThe central bank’s Federal Open Market Committee (FOMC) cut rates a third and final time in 2025, reducing the target range for the federal funds rate by 25 basis points to a 3.5% to 3.75% range. This reduction will help reduce financing costs of builder and developer loans.
Economics
Dec 09, 2025
Construction Labor Market StableThe count of open, unfilled positions in the construction industry was relatively unchanged in October, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from two years ago due to declines in construction activity, particularly in housing.