Mortgage Navigator • Conventional • Property & Appraisal

Conventional Property & Appraisal

A borrower can qualify perfectly and still have a loan fail because the property itself is not eligible collateral.

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Explore Property & Appraisal

General property eligibility

1–4 units, residential use, marketability and collateral standards.

Value Acceptance / appraisal waiver

When DU may not require a traditional appraisal.

Appraisal age & updates

Four-month update trigger and 12-month maximum framework.

Condition, repairs & completion

Safety, soundness, repair requirements and postponed improvements.

Accessory dwelling units

How an ADU differs from a second unit.

Mixed-use property

Residential properties with business use.

Solar panels

Owned, financed, leased and PPA systems.

Leasehold estates

Ground leases and market acceptance.
2026 appraisal transition: both agencies are moving through UAD 3.6 modernization. Freddie's current Guide notes mandatory use beginning November 2, 2026 for applicable requirements, so this branch should be rechecked as that date approaches.
Could the other agency solve this? Fannie Mae and Freddie Mac are not identical. If this scenario fails under one agency, compare the other agency's current rule and AUS result before assuming conventional financing is unavailable. A lender overlay is also different from an agency prohibition.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Property eligibility, valuation method, appraisal findings, AUS messages and lender overlays all matter. The appraisal supports collateral eligibility; it does not replace underwriting.