Reading the actual guideline text below — never a general AI guess

What Is a Hybrid Appraisal?

Here's what we're dealing with: A hybrid appraisal is one where the appraiser values the property without actually going inside or fully inspecting it in person. Instead, the appraiser uses recently collected property data (information about the home gathered by someone else) to form their opinion of value. The key point is that while the appraiser doesn't do the onsite visit themselves, they still sign the report and take responsibility for the valuation. Fannie Mae allows this only for certain property types and loan scenarios—ruling out two- to four-unit properties, co-ops, manufactured homes, new construction, and some other situations. The whole process requires the property data to meet specific federal standards, the appraiser to receive that data package and complete a specially designed form, and then the lender to submit everything through Fannie Mae's portal for review.

Straight from Fannie Mae Selling Guide, UAD 3.6/URAR (FNMA), and HUD/FHA Single Family Handbook 4000.1 — nothing added.

UAD 3.6 timeline brings hybrid appraisals into focus for lenders

Hybrid appraisals are positioned as a solution aligned with UAD 3.6 requirements, delivering valuations two to three days faster than traditional appraisals with 90% of loans now eligible under the new standardized data collection.

Fannie Mae and Freddie Mac expand hybrid appraisal eligibility

Federal Housing Finance Agency and the GSEs announced expanded eligibility for hybrid appraisals, with Fannie Mae updates effective March 22, 2025 and Freddie Mac updates effective April 7, 2025, opening the majority of conventional transactions to hybrid appraisal use.