This Bulletin has been revised to include new guidance issued by VA; updates highlighted below
VA issued Change 1 to Circular 26-20-13 May 8, 2020 to clarify and update temporary appraisal guidance due to COVID-19. In addition to changing the effective date of the policies, VA clarified exterior-only and desktop appraisal loan amount information and added guidance for water system acceptability. Updated/clarifications are highlighted below
The policies that previously applied to loans with an application date of April 10, 2020 and after now apply to loans closed on or after March 13, 2020
VA Purchase and Cash-Out Transaction Appraisal Options: Loans Closed on or after March 13, 2020
- Traditional appraisal (interior/exterior inspection), OR
- Exterior-only,
- An exterior-only appraisal is ONLY allowed when the financed loan amount (i.e. unpaid principal loan amount) for the transaction is not greater than one and a half (1.5) times the 1-unit 2020 Freddie Mac conforming loan limit for the county where the property is located (i.e. loan amount is ≤ 1.5 times the 1-unit FHLMC conforming loan limit for the county where the property is located), OR
- Desktop
- A desktop appraisal is ONLY allowed when the financed loan amount (i.e. unpaid principal loan amount) for the transaction is less than or equal to the 1-unit 2020 Freddie Mac conforming loan limit for the county where the property is located
The appraiser is responsible to determine the appraisal type and that it meets VA requirements
View the 2020 Freddie Mac limits by county at FHFA 2020 Limits
Exception to Appraisal Options: Vacant Properties
VA will require a traditional appraisal (interior/exterior inspection) for a vacant property UNLESS the vacant property is located in an area where a mandatory quarantine or “shelter in place
