HousingWire | Ben Lane
A proposal to increase the threshold at which residential home sales require an appraisal is pending final approve from the Federal Reserve. This new rule would not apply to loans wholly or partially insured or guaranteed by, or eligible for sale to, a government agency or government-sponsored agency – meaning FHA and VA loans among others would still require an appraisal.
Certain home sales of $400,000 and under may soon not need an appraisal, as federal regulators are close to approving a proposal to increase the threshold at which residential home sales require an appraisal for the first time since 1994.
In November, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve released a proposal that would increase the appraisal requirement from $250,000 to $400,000, meaning that certain home sales of $400,000 and below would no longer require an appraisal.
Now, the proposal is just one step away from being finalized and adopted as proposed.