When can I use an Evaluation?

The 2010 InterAgency Appraisal and Evaluation Guidelines allow evaluations in lieu of an appraisal in the following situations:

  • A transaction value equal to or less than the appraisal threshold of $250,000
    • A business loan with a transaction value equal to or less than the business loan threshold of $1 million, and is not dependent on the sale of, or rental income derived from, real estate as the primary source of repayment.
    • Involves an existing extension of credit at the lending institution, provided that:
      • There has been no obvious and material change in market conditions or physical aspects of the property that threaten the adequacy of the institutionā€™s real estate collateral protection after the transaction, even with the advancement of new monies; or
      • There is no advancement of new monies other than funds necessary to cover reasonable closing costs.
  • Other: See Federal Register Vol. 75., No. 237, pgs. 77465-77468

If you are unsure if a loan file would qualify under the appraisal exemption, please contact TrueValuation USA for a free consultation.

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