Quick answer: What is UAD 3.6?

UAD 3.6 is the new appraisal reporting standard from Fannie Mae and Freddie Mac. It becomes the standard for conventional loans sold to Fannie Mae or Freddie Mac on November 2, 2026. The old static forms, including the Form 1004 most agents know by heart, are being phased out and replaced by one dynamic Uniform Residential Appraisal Report (URAR). Some lenders have an approved exception to keep using the old format into 2027, and it is fully retired on June 28, 2027.

What that means in plain English: appraisers will collect more detail, including room measurements, separate interior and exterior condition ratings, energy and solar features, and accessory dwelling units. Listings with complete, accurate information will move faster. Listings with missing permits, fuzzy square footage or undocumented upgrades are the ones most likely to stall.

FHA, VA and USDA appraisals are not automatically covered by the November 2 date. Those agencies set their own timelines.

The appraisal is changing on November 2. Here's why that matters to your closing.

Picture a house in Holly Springs. The MLS says 3,100 square feet. The sellers finished the walkout basement a few years back, added a bonus room over the garage, and put solar on the roof last spring. Buyers loved it. Offer accepted, due diligence paid, everybody's happy.

Then the appraisal comes back at 2,640 square feet of gross living area.

Nobody lied. The basement is below grade, so it gets counted differently. The bonus room was never permitted. And nobody could find the solar lease paperwork, so the appraiser had nothing to work with. Now the buyer's agent is on the phone, the listing agent is digging through old emails, and the closing date is starting to wobble.

That scenario plays out in the Triangle every month. Starting November 2, 2026, the new appraisal standard puts every one of those details under a brighter light. The good news is that almost all of it is fixable if you know what's coming. That's what this guide is for.

What actually changes with UAD 3.6?

The old system used a stack of fixed forms. A single-family home got a 1004, a condo got a 1073, a 2 to 4 unit got a 1025, and so on. Anything that didn't fit neatly in a box got shoved into a free-form comment addendum at the back. Fannie Mae and Freddie Mac are retiring those forms, including the 1004, 1073, 1025 and 2055, and replacing them with one report that adapts to the property.

Here's what buyers, sellers and agents will notice:

• One dynamic report replaces the old forms. The report expands or shrinks based on the property. A condo, a farmhouse in Johnston County and a new build in Apex all get the sections that fit them.
• Separate interior and exterior condition ratings. The familiar C1 to C6 and Q1 to Q6 scales stay, but the definitions are tighter. A home with a beautiful new kitchen and a tired roof can now be rated on each, instead of one blended score.
• Room and component detail. Kitchen and bath updates, and when they happened, get reported more specifically. Vague "updated" language carries less weight.
• Standardized measurement. Square footage follows the ANSI Z765 measuring standard. Below-grade space (basements, even walkouts) is reported separately from above-grade gross living area.
• A dedicated energy and green features section. Solar panels (and whether they're owned or leased), HERS scores and other efficiency ratings get their own fields.
• Accessory dwelling units (ADUs). Size, room count, condition and location of an ADU are reported in detail, with interior photos.
• Disaster mitigation features. Things like storm shutters or elevated construction get their own section, which matters for coastal and flood-zone homes.
• A phased cutoff. UAD 3.6 becomes the standard on November 2. Lenders with an approved exception can submit old-format reports into 2027, and the old format is fully retired on June 28, 2027.

One thing that does not change: value still comes from comparable sales, market conditions and the property itself. The new report reorganizes how the appraiser tells the story. It doesn't change the need for solid evidence behind the number.

Does UAD 3.6 apply to FHA, VA and USDA loans?

Not automatically. The November 2 mandate covers conventional loans sold to Fannie Mae or Freddie Mac. FHA, VA and USDA set their own appraisal rules, and they're expected to adopt the new format on their own schedules. Until they announce a change, government-loan appraisals can keep using the legacy forms.

That creates a weird stretch where two houses on the same street, under contract the same week, could get appraisals in two completely different formats. One buyer is going conventional, the other is using a VA loan. Same neighborhood, different paperwork.

For agents, the practical takeaway is simple. Ask the lender early which loan type and which report format to expect. If you're working with us, we'll tell you upfront.

Will an old-format appraisal be rejected after November 2?

Not automatically. November 2, 2026 is when UAD 3.6 becomes the standard, but Fannie Mae gave lenders who couldn't be ready in time a way to request a temporary exception. Lenders with an approved exception can keep submitting new reports on the old UAD 2.6 format into 2027.

Here's how Fannie Mae's wind-down works for those lenders:

• November 2, 2026: UAD 3.6 becomes the standard. Lenders with an approved exception can still submit new old-format reports.
• March 1 to May 19, 2027: Old-format reports are still accepted, but they get a weaker automated risk score and lose some underwriting protections.
• May 20 to June 27, 2027: No new old-format reports. Only reports already submitted on the old format can be resubmitted.
• June 28, 2027: The old format is fully retired.

Freddie Mac sets its own requirements, and not every lender has an exception. So if you have a conventional deal under contract this fall, the safe move is simple:

1. Ask the lender which appraisal format they're using for this loan.
2. Ask whether their plan could affect timing before you set or move dates.

Lenders already on UAD 3.6 have nothing to change. The point is to know each lender's plan instead of assuming an appraisal will need to be redone.

Selling a home in Raleigh, Cary or Apex? How to prepare for a UAD 3.6 appraisal

The appraiser works for the buyer's lender, not for you. But the information you hand over before they arrive can make the difference between a smooth valuation and a week of back-and-forth.

Gather these before you list:

• A list of improvements with dates. New roof in 2021, kitchen redo in 2023, HVAC replaced last year. Dates matter more now because the report tracks when components were updated.
• Permits for additions and finished spaces. Bonus rooms, finished basements, sunrooms, converted garages. Unpermitted space is where appraisals most often come up short.
• A floor plan or sketch if you have one from the builder or a previous sale.
• Solar paperwork. Owned or leased, system size, and any lease or PPA agreement. A leased system is treated very differently from an owned one.
• Energy documents. HERS score, Energy Star certifications, utility history if you have it.
• ADU details. If there's a guest suite, detached apartment or in-law space, have its size, kitchen and bath details, and any permits ready.

Plan for a longer visit, too. Appraisers will spend more time measuring rooms and photographing features. Make sure every room, the attic access, the crawl space and any outbuildings can be reached.

What you shouldn't do: tell the appraiser what you think the house is worth, or lean on them about a number. Facts help. Pressure doesn't, and in North Carolina, brokers are specifically prohibited from trying to influence an appraiser's opinion of value.

Buying a home in the Triangle? What UAD 3.6 means for you

For buyers, this change is mostly good news. You'll get a more detailed, more consistent picture of the home you're about to borrow against, including separate notes on interior and exterior condition and clearer reporting on things like solar and energy efficiency.

The trade-off is time. While appraisers and lenders get comfortable with the new report, some turnaround times may stretch, especially in the first weeks after November 2.

Here's how to protect yourself:

• Build some breathing room into your due diligence period. In North Carolina, due diligence is the window when you can walk away for any reason and get your earnest money back. Talk with your agent about timing so the appraisal isn't landing on the last possible day.
• Ask for a copy of the appraisal as soon as it's ready. It belongs to your lender, but you're entitled to a copy. Read it with your agent.
• Compare the square footage to the listing. If the appraisal shows less than the MLS, look for below-grade square footage. A finished basement often explains the gap.
• Paying cash? Consider an appraisal anyway. Nobody requires one, but it can verify square footage and flag property issues before you're committed. Your agent can walk you through it using NC REALTORS Form 760.
• Get your financing strategy set before you shop. Knowing your loan type upfront (conventional, FHA, VA, USDA, jumbo or something more creative) tells you which appraisal rules apply to your deal.

For North Carolina real estate agents: your UAD 3.6 game plan

The NC Real Estate Commission has already flagged this one. It added an appraisal section to the 2026-2027 Mandatory Update Course and is urging brokers to take it early. It also expects appraisers to contact listing agents more often than before to fill in property details.

Here's where agents can make the biggest difference.

Listing agents

• Build an appraiser packet at listing, not at contract. Improvements with dates, permits, floor plan, solar documents, HERS score, ADU details, HOA info. Have it ready to send the day the appraisal is ordered.
• Treat MLS fields like they're evidence. Room dimensions, below-grade vs. above-grade space, energy features, solar ownership. Appraisers pull comps from this data, so sloppy inputs hurt your listing and everyone else's on the street.
• Respond to appraiser calls fast. A same-day answer can save a week.
• Stick to facts. NC Commission Rule A .0120(c) prohibits brokers from influencing or attempting to influence an appraiser's opinion of value. Share documents freely. Don't suggest a number.

Buyer agents

• Get the appraisal report early. Ask your client to request it from the lender as soon as it's available, then read it together.
• Check square footage against the MLS. If it's lower, look for below-grade space before you sound the alarm.
• Use the right language. The Commission recommends calling it "the appraisal performed for the buyer's lender," not "the buyer's appraisal," since the lender is the appraiser's client.
• Talk to cash buyers about an appraisal. NC REALTORS Form 760 (Professional Services Disclosure and Election) lists appraisal as a service, which gives you a natural way to bring it up.
• Pad the timeline in early November. Set due diligence and closing dates with a little extra room for appraisal review while everyone adjusts.

How The Sherry Riano Team is handling the switch

Appraisal surprises usually trace back to something nobody asked about early enough. That's why every one of our clients starts with a strategy call before they ever fill out an application. We talk through the loan type, the property, and anything that could trip up underwriting, including what the appraisal is likely to find.

For the UAD 3.6 transition, that means:

• We confirm which appraisal format applies to your loan before it's ordered.
• On deals closing this fall, we confirm the appraisal format and timing upfront so there are no surprises.
• If an appraisal comes in short or flags something unexpected, our team works the problem. Sometimes that's a reconsideration of value with better data. Sometimes it's a different loan structure that fits the property better.

We've been through rule changes, rate swings and more than one housing cycle. This one is very manageable when you plan for it.

Buying or selling in the Triangle? Book a strategy call with our team and we'll map out your financing before you make a move.

Agent with a listing or contract in the next 60 days? Call us at (919) 234-7415. We're happy to talk through your appraisal timeline, whether or not we're the lender on the deal.

Frequently asked questions about UAD 3.6

When does UAD 3.6 become mandatory? UAD 3.6 becomes the standard on November 2, 2026. Lenders with an approved Fannie Mae exception can keep submitting old-format reports into 2027, and the old UAD 2.6 format is fully retired on June 28, 2027.

Is Form 1004 going away? Yes, for conventional loans sold to Fannie Mae or Freddie Mac, on a phased timeline. The 1004, 1073, 1025, 2055 and related forms are being replaced by a single dynamic Uniform Residential Appraisal Report.

Does UAD 3.6 apply to FHA or VA loans? Not automatically. FHA, VA and USDA set their own timelines and can continue using legacy forms until they announce a change.

Will an old-format appraisal be rejected after November 2? Not automatically. Lenders with an approved Fannie Mae exception can submit new old-format reports through May 19, 2027. From May 20 to June 27, 2027, only previously submitted old-format reports can be resubmitted, and the old format is fully retired on June 28, 2027. Ask the lender on each deal which format they're using.

Will UAD 3.6 make appraisals take longer? Possibly at first. The report collects more detail, so inspections can run longer and turnaround times may stretch while appraisers and lenders adjust.

Will UAD 3.6 lower my home's appraised value? Not by itself. Value still comes from comparable sales and the property. But clearer rules on below-grade space, unpermitted additions and leased solar can expose gaps that were easier to overlook before.

What should sellers give the appraiser? A dated list of improvements, permits, a floor plan if available, solar and energy documents, and ADU details. Facts only, never a suggested value.

Can a real estate agent talk to the appraiser? Yes. NC brokers can provide any information an appraiser requests, but Commission Rule A .0120(c) prohibits trying to influence the appraiser's opinion of value.

Should cash buyers get an appraisal? It's optional, but it can verify square footage and flag issues before closing. NC REALTORS Form 760 lists appraisal as a service agents can discuss with buyers.

Sources

• Freddie Mac: UAD and Forms Redesign FAQs
• NC Real Estate Commission Bulletin: Do You Know that Real Estate Appraisals Are Changing?
• Opteon: UAD 3.6 Unpacked FAQ
• McKissock: Fannie Mae and Freddie Mac Announce UAD 3.6 Implementation Timeline and Policy Changes
• Fannie Mae: UAD 3.6 Photo and Image Requirements

• Fannie Mae Lender Letter LL-2026-08: Temporary Policy Exception for Lenders Unable to Meet the UAD 3.6 November Mandate

The Sherry Riano Team at Developer's Mortgage Company. Sherry Riano, NMLS #71774. Hunter Boyd, NMLS #1775887. Developer's Mortgage Company, NMLS #225548. 215 E. Chatham St., Suite 301, Cary, NC 27511. (919) 234-7415. Equal Housing Lender. This article is for general educational purposes and is not legal or appraisal advice. Program guidelines and agency timelines can change. All loans subject to credit approval and underwriting guidelines.

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