Essential UAD 3.6 Changes: What Agents and Lenders Need to Know
A big change is coming to residential appraisals this fall.
For loans sold to Fannie Mae and Freddie Mac, every new appraisal submitted on or after November 2, 2026 must use the new UAD 3.6 format. FHA has made the new format optional so far, and VA hasn’t set a timeline yet.
This isn’t just a new form. It changes what appraisers record at a property, how it’s reported, and how long the process takes. Here’s what you need to know, with a focus on what it means here in southeastern North Carolina.
The New Report
The familiar forms are being retired, including the 1004 for houses and the 1073 for condos. In their place is one redesigned Uniform Residential Appraisal Report (URAR) that adjusts to the property and the assignment. The data standard behind it, UAD 2.6, is being replaced by UAD 3.6.
The majority of the data fields are new or restructured. Where appraisers used to write a sentence or two, the new report asks for specific, standardized answers. That means more detail about every property, and more questions for sellers and owners.
What’s New, and Why It Matters
Many of the new questions affect coastal homes directly.
Water access
If a property has private water access, the report now records how that access is held (deeded, by permit, privately owned), whether there’s a right to build, the linear feet of frontage, and the water depth (deep, shallow, or non-navigable). For a home on the Intracoastal or a marsh lot, those details need to be accurate and documented.
Front door elevation
The report records the approximate height from the ground to the bottom of the front door, from ground level up to 10 feet or more. For elevated homes and homes on pilings, this gets noted every time.
Disaster mitigation
Flood vents, impact-resistant glass, and storm shutters are now recorded as specific features. If a home has them, owners should be ready to point them out.
Solar and energy features
Solar panels are recorded along with whether they’re owned or leased. Green certifications and efficiency ratings, like a HERS score, are recorded too.
Views
The report records the primary view and whether it’s full, partial, or seasonal.
Additional Updates
Kitchens and bathrooms
For every kitchen and bathroom, the report records whether it’s been updated, roughly when, and its condition.
Roof age
The report asks for an estimate of when the roof was last replaced.
Converted space
Garages, porches, or other areas converted into living space are now called out specifically.
Ceilings
Ceiling height and style are recorded.
ADUs and Outbuildings
An accessory dwelling unit gets its own full section, with its own measurements and details such as whether it’s legally rentable, has its own entrance, or has a separate mailing address. Detached garages, workshops, and other outbuildings now include their size, room count, and which utilities run to them.
Defects
Visible problems are now recorded one by one: what the issue is, where it is, whether it affects soundness or structure, and the recommended next step (repair, inspection, or none). Each defect is supported by photos placed right next to that section of the report.
Interior vs. exterior
Condition and quality are now rated separately for the interior and exterior. The rating scale itself hasn’t changed, but the definitions are stricter.
If You’re a Real Estate Agent
Expect appraisal visits to take longer, especially at first, as appraisers document everything the new report requires.
The more your sellers prepare, the smoother the appraisal goes. Here’s a checklist you can share with them:
~Access: attic, crawlspace, garage, and every outbuilding or ADU unlocked and reachable.
~Update list: what was updated and roughly when (roof, HVAC, kitchens, baths, windows, flooring).
~Solar: whether panels are owned or leased, with paperwork handy.
~Storm features: flood vents, impact windows, shutters, and any related receipts.
~Water access: documents showing deeded rights, permits, or dock and pier details.
~ADUs: whether the unit is permitted, has its own entrance, or has its own address.
~Known issues: anything already repaired, with dates and receipts.
A few more tips:
~Build a little extra time into appraisal contingencies this fall while everyone adjusts.
~Deal with small visible repairs before listing. Missing handrails, water stains, and damaged siding now get documented individually with photos.
~If a converted garage or ADU wasn’t permitted, talk about it before the appraisal, not after.
If You’re a Lender or Loan Officer
Timing is based on submission, not the order date. Legacy 2.6 reports must be submitted before November 2 or converted to 3.6. An appraisal ordered in October but delivered and submitted in November will need the new format. Revisions to 2.6 reports already submitted are still allowed for a period after the deadline.
~The new report is ordered by property and assignment type rather than form number. Include complete details up front: property type, any ADU or outbuilding, and occupancy.
~Expect longer turnaround times while appraisers, software, and lenders adjust. Files closing in late October and November are the ones most likely to feel the squeeze.
~Defects, recommended repairs, and an “as is” condition rating for appraisals made subject to repairs are all captured as specific data. That can make conditions clearer for underwriting.
If You’re an Attorney or Paralegal
Estate, divorce, and litigation appraisals aren’t loans sold to Fannie Mae or Freddie Mac, so this mandate doesn’t govern them the same way. Appraisers can use other report formats for these assignments, depending on the purpose and the client’s needs.
What the change does show is where the industry is heading: more standardized data and more automated review. In a dispute, that raises the bar for documentation. A value needs clear support, photos tied to the findings, and an appraiser who can explain it.
Common Questions
A few questions that come up often about the transition.
Does UAD 3.6 affect cash sales?
If there’s no loan, there’s no lender appraisal requirement. A buyer who orders their own appraisal isn’t bound by this mandate.
What about FHA and VA loans?
FHA currently accepts the new format on an optional basis. VA hasn’t announced a timeline. Check with your lender for their current policy.
Will appraisal fees change for UAD 3.6?
The new report requires more time and detail, so many appraisers expect fees to reflect that, especially during the transition. Ask your appraiser about current pricing.
Does the new report take longer to complete?
In most cases, yes, at least at first. The report captures far more detail, and appraisers, software providers, and lenders are all still adjusting.
Who Stands Behind The Number?
The new format pushes more property data into automated systems than ever before. That makes one question a lot less theoretical: if a value is challenged, who answers for it?
When a licensed appraiser signs a report, their license is attached to it. They carry insurance on it. If it ends up in a courtroom, they’re the one explaining how they got there.
An algorithm can’t do that.
Have a waterfront home, an ADU, or a tight timeline this fall? Call A. Jay Cottle Appraisers early to talk through what to expect for UAD 3.6.
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[…] For simpler homes, this process takes roughly 7 days. For lender work after November 2, the new UAD 3.6 form will likely cause appraisal work to take twice as long due to the large amount of data needed to […]