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C4 Condition Rating
Here's what we mean by a C4 rating: the home has been maintained adequately overall, but it shows moderate wear and tear from normal living and weather exposure. The place may have some updates, but they're scattered rather than part of a full renovation. Unlike a C3 (which is well-maintained with only minimal wear), a C4 dwelling is showing its age more noticeably, though all the major systems and components still work. Freddie Mac describes it the same way — some deferred maintenance and physical deterioration are present, minor to moderate repairs may be needed, but all major building components still function.
All Condition Ratings (C1–C6) from UAD 3.6 Appendix 2:
- C1: 100% newly constructed, completed within the past 12 months, never occupied, no signs of wear or use.
- C2: Recently constructed (within the past 36 months) or entirely remodeled, exhibiting like-new condition with no deferred maintenance and no repairs needed.
- C3: Well-maintained with only minimal wear and tear; minor age-related physical depreciation; or most (but not every) major building component updated or renovated.
- C4: Adequately maintained with moderate wear and tear from occupancy and weather exposure; may feature some updating.
- C5: Significant wear and tear from inadequate maintenance; soundness and structural integrity sufficient for occupancy; some components missing or near end of useful life; major components still functional; items will need repair or replacement soon.
- C6: Extreme lack of maintenance causing severe damages or defects affecting soundness or structural integrity; not suitable for occupancy; major components missing or nonfunctional; requires immediate repairs or replacement.
Straight from UAD 3.6 / URAR (FNMA) Appendix 2 — nothing added.
Here's what we mean by a C4 rating: the home has been maintained adequately overall, but it shows moderate wear and tear from normal living and weather exposure. The place may have some updates, but they're scattered rather than part of a full renovation. Unlike a C3 (which is well-maintained with only minimal wear), a C4 dwelling is showing its age more noticeably, though all the major systems and components still work. Freddie Mac describes it the same way — some deferred maintenance and physical deterioration are present, minor to moderate repairs may be needed, but all major building components still function.
All Condition Ratings (C1–C6) from UAD 3.6 Appendix 2:
- C1: 100% newly constructed, completed within the past 12 months, never occupied, no signs of wear or use.
- C2: Recently constructed (within the past 36 months) or entirely remodeled, exhibiting like-new condition with no deferred maintenance and no repairs needed.
- C3: Well-maintained with only minimal wear and tear; minor age-related physical depreciation; or most (but not every) major building component updated or renovated.
- C4: Adequately maintained with moderate wear and tear from occupancy and weather exposure; may feature some updating.
- C5: Significant wear and tear from inadequate maintenance; soundness and structural integrity sufficient for occupancy; some components missing or near end of useful life; major components still functional; items will need repair or replacement soon.
- C6: Extreme lack of maintenance causing severe damages or defects affecting soundness or structural integrity; not suitable for occupancy; major components missing or nonfunctional; requires immediate repairs or replacement.
Straight from UAD 3.6 / URAR (FNMA) Appendix 2 — nothing added.
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© Copyright Notice: © Fannie Mae. UAD 3.6 / URAR reference materials shown for research and reference only. Full documents available at fanniemae.com/uad. Reproduction restricted per Fannie Mae copyright policy.
© Copyright Notice: © 2026 Fannie Mae. Excerpts shown for research and reference only. Full document available at selling-guide.fanniemae.com. Reproduction restricted to Fannie Mae-approved lenders.
© Copyright Notice: © Freddie Mac. Excerpts shown for research and reference only. Full document available at guide.freddiemac.com. Reproduction restricted per Freddie Mac copyright policy.
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building component, has been updated or renovated. A dwelling in C3 condition will likely have: • Components or rooms that are older but have been very well maintained or…
UAD 3.6 / URAR (FNMA) · Appendix F-1 URAR Reference Guide v1.3.pdf · Page 348
· View at official source (fanniemae.com/uad) →
building component, has been updated or renovated. A dwelling in C3 condition will likely have: • Components or rooms that are older but have been very well maintained or experienced minimal use, and show little or no physical depreciation, or • Major components or rooms that have been recently updated, but which do not constitute a full-home renovation/remodel. Examples of major components include but are not limited to a combination of (one or more): • Newer roof • Some newer mechanicals • New / newer floor coverings • Remodeled kitchen or bathroom(s) C4 The dwelling has been adequately maintained and exhibits moderate wear and tear resulting from occupancy and exposure to elements. The dwelling may feature some updating, but otherwise
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on how the dwelling relates or compares to other properties. Additionally, the condition and quality ratings for comparable properties must be made on an absolute basis (again,…
Fannie Mae Selling Guide · Selling_Guide_Supplement_UAD_3.6_Policy.pdf · Page 98
· View at official source (selling-guide.fanniemae.com) →
· Last verified: 2026-09-30
on how the dwelling relates or compares to other properties. Additionally, the condition and quality ratings for comparable properties must be made on an absolute basis (again, each comparative dwelling on its own merits), not on a relative basis, and reflect the dwelling as of the date of sale of that comparable property. Note: These requirements also apply to all other ratings or descriptions, including the View and Location. When an appraiser selects a rating and/or description of the subject property for a sales transaction, the selected rating and/or description must remain the same when reflecting that specific transaction. For example, if a C4 rating is selected for the sale of the subject property, then that dwelling remains a C4
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As previously noted, the condition rating selected for the property must reflect a holistic view of the condition of the property improvements. It would be inappropriate to select…
Fannie Mae Selling Guide · Selling Guide - 06-03-2026.pdf · Page 591
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As previously noted, the condition rating selected for the property must reflect a holistic view of the condition of the property improvements. It would be inappropriate to select either a lower or higher overall rating on the basis of one or two minor inferior or superior areas of the property improvements. However, the C6 rating is an exception because it indicates that the property is impacted by one or more deficiencies that negatively affect the safety, soundness, or structural integrity of the property. As a result, if any portion of the dwelling is rated a C6, the whole dwelling must be rated a C6. Loans secured by properties with a condition rating of C6 are not eligible for sale to