Hybrid Appraisals
Updated June 2025
Fannie Mae is on a journey of continuous improvement to make the home valuation process more efficient and accurate. We provide a spectrum of options to establish a property’s market value, with each option matching the risk of the collateral and the loan transaction. The spectrum balances appraisals with valuation alternatives.
Hybrid appraisals are an appraisal option requiring a property data collection (PDC). The PDC must be performed by a trained and vetted third-party property data collector before submitting the data to an appraiser for the development of a credible opinion of value. Hybrid appraisals leverage technology-driven processes enabled by a property data collector to increase appraiser efficiency and capacity while aiming to reduce loan origination cycle time for borrowers.
Exercising a hybrid appraisal
- Lender receives hybrid appraisal eligibility message from Desktop Underwriter® (DU®).
- Lender orders PDC through an approved service provider.
- Lender or service provider submits the results of the PDC to Fannie Mae’s Property Data API.
- Lender or service provider delivers PDC report to the appraiser who is responsible for including additional information and developing an opinion of value (using either Form 1004 Hybrid or Form 1073 Hybrid in UAD 2.6 or completing the new Uniform Residential Appraisal Report for UAD 3.6). Appraiser submits the hybrid appraisal report to the lender or service provider.
Benefits of hybrid appraisals
- Reduces origination cycle time.
- Reduces risk by providing standardized and objective property data.
- Increases appraiser efficiency and productivity.
Property data collection
The act of physically observing and reporting property characteristics. The data collection must be performed by a trained and vetted third party or appraiser and does not involve the development of an opinion of value. It must adhere to the Uniform Property Dataset (UPD) specifications. See the UPD page for more information. Once the PDC is complete and passes quality control checks, it must be submitted to Fannie Mae’s Property Data API.
Tech and tools
Visit the Property Valuation webpage to get onboarding details and more information about using technology and tools.
Property Data API
Fannie Mae has established a property data standard and API to collect data and images consistently. The process encourages the use of emerging technologies to capture property information, imagery, and floor plans.
Property Data API Review Tools
Lenders and appraisal management companies may use our property data collection web viewer known as Property Data API Review Tool (PDART) to aid with their required review process. Users can easily view the submitted property data, photos, and floor plan, as well as messages to help identify any potential property data collection issues.
Representations and warranties
All eligible loans with a hybrid appraisal secured by a one-unit detached, attached, or condo property that receives a Collateral Underwriter® risk score of 2.5 or less are eligible for enforcement relief of certain representations and warranties related to the appraised value of the subject property.
Ineligible transactions
Eligibility criteria for Hybrid appraisals will align with traditional appraisals except for the following exclusions:
- Two- to four-unit;
- Co-op;
- Manufactured homes;
- Proposed construction;
- Construction-to-permanent (single-close and two-close);
- HomeStyle® Renovation and HomeStyle® Energy loans;
- DU loan casefiles that receive an Ineligible recommendation; and
- Manually underwritten loans.
