In Lender Letter LL-2020-04, Impact of COVID-19 on Appraisals, Fannie Mae provided appraisal flexibility for new construction purchase transactions by allowing for completion of “desktop” appraisals. Is this flexibility available for all new construction purchase transactions, including second homes?
No. New construction purchase transactions are subject to the requirements provided in LL-2020-04, including all requirements in the permissible appraisal requirements chart. Therefore, second homes with an LTV greater than 85% require a traditional appraisal report.
For more information, refer to the published Lender Letter LL-2020-04, Impact of COVID-19 on Appraisals.