source:
  type: regulation
  id: usda-hb-3555-12.5
  authority: USDA Technical Handbook HB-1-3555 §12.5 — Residential Appraisal Reports
  description: "USDA HB-1-3555 §12.5 (Residential Appraisal Reports). Gap-fill (verbatim). \n"
obligations:
- id: usda-hb-3555-12.5-0
  canonical_id: usda-hb-3555-12.5-0
  section: USDA HB-1-3555 12.5 — Residential Appraisal Reports
  description: '12.5 Residential Appraisal Reports: SIDENTIAL APPRAISAL REPORTS Approved lenders must ensure appraisals
    are completed by a qualified appraiser that is independent and objective. Approved lenders are responsible to
    review all appraisals for integrity, accuracy, and thoroughness, prior to submission of a complete loa…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.5 — Residential Appraisal Reports
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 'SIDENTIAL APPRAISAL REPORTS Approved lenders must ensure appraisals are completed by a qualified
      appraiser that is independent and objective. Approved lenders are responsible to review all appraisals for
      integrity, accuracy, and thoroughness, prior to submission of a complete loan application package to USDA.
      The lender may pass the cost of the appraisal on to the borrower. The appraisal must have been completed within
      180 days of loan closing. Appraisals that are older than 180 days prior to loan closing are eligible for an
      appraisal update as indicated in this Chapter. A. Qualified Appraiser Approved lenders must select qualified
      and competent appraisers that are properly licensed or certified, as appropriate, in the State in which the
      property is located. The appraiser must comply with the current edition of the Uniform Standards of Professional
      Appraisal Practice (USPAP). Lenders may verify that an appraiser is licensed or certified by checking the
      Appraisal Subcommittee website found at www.asc.gov/appraiser. B. Appraisal Report All appraisals must comply
      with the reporting requirements of USPAP available at www.appraisalfoundation.org. All appraisal reports must
      meet the Uniform Appraisal Dataset (UAD) requirements set forth by Fannie Mae and Freddie Mac. To read definitions
      of condition and quality ratings, refer to the Fannie Mae and Freddie Mac Uniform Appraisal Dataset, located
      online at: https://singlefamily.fanniemae.com/delivering/uniform-mortgage-data-program/uniform- appraisal-dataset.
      The appraiser will utilize the most current residential appraisal forms acceptable to Fannie Mae, Freddie
      Mac, HUD, or VA.'
    drafter_attestation: Verbatim from HB-1-3555 §12.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.5-1
  canonical_id: usda-hb-3555-12.5-1
  section: USDA HB-1-3555 12.5 — Residential Appraisal Reports
  description: '12.5 Residential Appraisal Reports: 05-05-25) PN 640 Guidance documents lack the force and effect
    of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely
    on any guidance that is not available through their guidance portal, except to establish historical facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.5 — Residential Appraisal Reports
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. Appraisal considerations: x Appraiser/client
      confidentiality under USPAP Ethics Rules does not permit the appraiser to discuss the appraisal with anyone
      other than the client, without the client’s permission. It is recommended, but not required, that USDA/RD
      be identified as an intended user with the lender in the appraisal report obtained. x The market or sales
      comparison approach is required in all cases. No less than three comparable sales will be used unless the
      appraiser provides documentation that such comparable sales are not available. The appraiser must use their
      knowledge of the area and apply good judgment in the selection of comparable sales that are the best indicators
      of value for the subject property. x The appraiser will determine if the cost approach is required. For example,
      the property is unique, has specialized improvements, is new manufactured housing, or if the client requests
      the cost approach to be completed, then the appraiser will identify the source of the cost estimates and will
      comment on the methodology used to estimate depreciation, effective age, and remaining economic life. x The
      income approach is only required if the appraiser determines that it is necessary to develop credible assignment
      results. x An appraisal prepared for REO purposes, loan servicing consideration, or any other purpose other
      than the guaranteed purchase or refinance transaction is ineligible to be used in the origination of a guaranteed
      loan. A new appraisal with the intent to arrive at an opinion of value for a purchase transaction must be
      obtained. Photographs. Photographs in the appraisal report must be in color and be clear and descriptive to
      identify the property’s condition and quality. Photographs must clearly represent the improvements, any physical
      deterioration of the property, amenities, conditions, and external influences that may have a material effect
      on the market value or marketability of the subject property. Lenders will upload the appraisal report at
      the Application Documents page in the Agency’s automated underwriting system, GUS, by selecting 10002 Appraisal
      Report and uploading as an individual document. An appraisal report with interior and exterior inspection
      of the subject property must include at least the following:'
    drafter_attestation: Verbatim from HB-1-3555 §12.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.5-2
  canonical_id: usda-hb-3555-12.5-2
  section: USDA HB-1-3555 12.5 — Residential Appraisal Reports
  description: '12.5 Residential Appraisal Reports: 05-05-25) PN 640 Guidance documents lack the force and effect
    of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely
    on any guidance that is not available through their guidance portal, except to establish historical facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.5 — Residential Appraisal Reports
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. x A front view of the subject property;
      x A rear view of the subject property; x A street scene identifying the location of the subject property and
      showing neighboring improvements; x The kitchen, main living area, bathrooms, bedrooms; x Any other rooms
      representing overall condition, recent updates, such as restoration, remodeling, and renovation; x Basement,
      including all finished and unfinished rooms; x Attic and/or crawl space when it can be safely accessed without
      disturbing or moving items that obstruct access or visibility; x Comparable sales, listings, and/or pending
      sales utilized in the valuation analysis must include at least a front view of each comparable utilized; x
      The HUD Data Plate and the HUD Certification Label(s) for manufactured homes; and x Condominium projects should
      include additional photographs of the common areas and shared amenities. Appraisal transfer. An appraisal
      ordered by another lender for the applicant can be transferred to the lender who will complete the purchase
      transaction. The initial lender must agree to the transfer of the report. A letter from the initial lender
      who ordered the appraisal report must be retained in the permanent loan file as evidence the initial lender
      transferred the report to the lender completing the purchase transaction. The receiving lender must assume
      full responsibility for the integrity, accuracy, and thoroughness of the appraisal report, including the methods
      that the original lender used to acquire the appraisal. The appraisal report must be no older than 180 days
      at loan closing to be valid. Appraisal update. The validity period of an appraisal report can be extended
      only one time with an Appraisal Update Report. The appraisal may be expired at the time the appraisal update
      is requested. However, when the original appraisal is subsequently
    drafter_attestation: Verbatim from HB-1-3555 §12.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.5-3
  canonical_id: usda-hb-3555-12.5-3
  section: USDA HB-1-3555 12.5 — Residential Appraisal Reports
  description: '12.5 Residential Appraisal Reports: 05-05-25) PN 640 Guidance documents lack the force and effect
    of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely
    on any guidance that is not available through their guidance portal, except to establish historical facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.5 — Residential Appraisal Reports
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. updated, the appraisal is valid for no
      greater than one year from the effective date of the original appraisal report at loan closing. The purpose
      of an appraisal update request is to determine if the property has declined in value since the effective date
      of the original appraisal. An update is not eligible to support a higher appraised value of the property.
      USPAP considers the term “Appraisal Update” as a business term, but regardless of the nomenclature used, when
      a client seeks a more current value or analysis of a property that was the subject of a prior assignment,
      this is not an extension of that prior assignment that was already completed; it is simply a new assignment.
      Refer to USPAP Advisory Opinion 3 for additional clarification, available at www.appraisalfoundation.org.
      USPAP (Advisory Opinion 3) states that there are three ways that the reporting requirements can be satisfied
      for this type of assignment: 1. Provide a new report that contains all the necessary information/analysis
      to satisfy the applicable reporting requirements, without incorporation of the prior report by either attachment
      or reference. 2. Provide a new report that incorporates by attachment specified information/analysis from
      the prior report so that, in combination, the attached portions and the new information/analysis added satisfies
      the applicable reporting requirements. 3. Provide a new report that incorporates by reference specified information/analysis
      from the prior report so that, in combination, the referenced portions and the new information/analysis added
      satisfies the applicable reporting requirements. The appraiser may use a pre-printed form or a narrative report
      to provide the appraisal update, but whichever reporting format is used, it must be in compliance with USPAP.
      Fannie Mae Form 1004D/Freddie Mac Form 442, Appraisal Update and/or Completion Report, may be utilized by
      the lender to report the completion of a repair and/or satisfaction of requirements and conditions noted in
      the original appraisal report. Property flipping. It remains the lenders responsibility to ensure any recently
      sold property’s value is strongly supported when a significant increase between sales occur. The lender must
      perform a thorough review of the appraisal report to validate and support the property’s value and protect
      the applicants from possible predatory real estate lending.'
    drafter_attestation: Verbatim from HB-1-3555 §12.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.5-4
  canonical_id: usda-hb-3555-12.5-4
  section: USDA HB-1-3555 12.5 — Residential Appraisal Reports
  description: '12.5 Residential Appraisal Reports: 05-05-25) PN 640 Guidance documents lack the force and effect
    of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely
    on any guidance that is not available through their guidance portal, except to establish historical facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.5 — Residential Appraisal Reports
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. C. Agency Review The Agency will review
      appraisals for all guarantee loan requests by completing Form RD 1922-15, Administrative Appraisal Review.
      If the Agency reviewer detects concerns, the appraisal will be referred to an Agency Review Appraiser for
      a technical desk or technical field review. Should the Agency licensed appraisers determine the appraisal
      is not adequate, the lender will be informed of corrections needed prior to issuance of the Conditional Commitment
      for Loan Guarantee. The lender will be required to correct or complete any appraisal returned by the Agency
      for corrective action. The lender is responsible to communicate and initiate corrective action with the appraiser.
      The corrected appraisal will be subject to the same review process described in this section. The Agency retains
      the right to determine an appraiser is ineligible based upon their failure to comply with requirements of
      this section. The Agency will notify the lender when appraisals completed by ineligible appraisers will no
      longer be accepted for the SFHGLP. D. Directors of the Origination and Processing Division Responsibilities
      A director of the Origination and Processing Division (OPD) will designate or delegate authority to the supervisory
      staff of the unit or other qualified personnel to conduct administrative appraisal reviews. Technical appraisal
      reviews must be completed by an Agency certified or licensed appraiser and need only be licensed or certified
      in one State or territory to perform real estate appraisal duties as Federal employees in all states and territories.
      Review appraisers must have recent, documented appraisal experience or other factors which clearly establish
      their qualifications as a reviewer. A director of the OPD will determine and establish the training needs
      for Rural Development OPD staff completing appraisal reviews. A director of the OPD will also assure that
      an adequate number of reviews are being completed. E. Types of Agency Reviews There are three types of reviews
      for appraisals: “Administrative,” “Technical Desk,” and “Technical Field.” An administrative review will be
      completed for all transactions involving the submittal of an appraisal report. A sufficient number of technical
      desk and technical field reviews will be completed to ensure the Agency is getting quality'
    drafter_attestation: Verbatim from HB-1-3555 §12.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.5-5
  canonical_id: usda-hb-3555-12.5-5
  section: USDA HB-1-3555 12.5 — Residential Appraisal Reports
  description: '12.5 Residential Appraisal Reports: 05-05-25) PN 640 Guidance documents lack the force and effect
    of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely
    on any guidance that is not available through their guidance portal, except to establish historical facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.5 — Residential Appraisal Reports
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. appraisals for the Guaranteed Loan Program.
      An explanation of the review types are as follows: 1. Administrative Reviews Administrative reviews are performed
      by the Agency loan approval official or qualified designee on all appraisals prior to issuance of the Conditional
      Commitment. This review determines if there are inconsistencies in the appraisal report that may have to be
      addressed, or if a technical review should be completed by the Agency staff appraiser prior to issuance of
      the Loan Note Guarantee. Indicators that a technical review may be required will be documented on Form RD
      1922-15. x Administrative reviews are completed by the Agency on Form RD 1922-15. This form will be signed,
      dated, and retained in the Agency file for uploading. This review should be completed prior to issuance of
      the Conditional Commitment. x If there is a deficiency with an appraisal, the loan approval official should
      communicate the deficiency to the lender. These deficiencies should include items that affect loan security,
      value conclusions, or unacceptable property conditions. 2. Technical Desk Reviews A technical desk review
      is performed to determine whether the appraisal was complete, was clearly reasoned, and had adequate support
      for the conclusion of value. Technical reviews are performed by the Agency Appraiser. Technical reviews completed
      by Agency appraisers must follow current USPAP guidelines. x Technical desk reviews may be documented in any
      format that complies with USPAP and is acceptable for use by RD. Technical reviews should be selected in a
      random method. The percent of files randomly selected will be set by the direction of the SFHGLP. A director
      of the OPD, the Quality Assurance and Lender Oversight Division, or designated supervisory staff, will coordinate
      with Program Support Staff (PSS) in National Headquarters to establish internal management controls and systems
      to document and substantiate residential appraisal compliance activities, which will be'
    drafter_attestation: Verbatim from HB-1-3555 §12.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.5-6
  canonical_id: usda-hb-3555-12.5-6
  section: USDA HB-1-3555 12.5 — Residential Appraisal Reports
  description: '12.5 Residential Appraisal Reports: 05-05-25) PN 640 Guidance documents lack the force and effect
    of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely
    on any guidance that is not available through their guidance portal, except to establish historical facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.5 — Residential Appraisal Reports
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: 05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. evaluated during Internal Control Reviews,
      Single Family Housing program reviews, and other similar types of reviews. Technical desk reviews of appraisals
      received by the Agency provide a method of internal control by the appraisal review staff and ensure that
      appraisals received by the Agency are in compliance with USPAP and Agency regulations. A Director of the OPD,
      or designated supervisory staff, will support completion of technical desk reviews in coordination with PSS
      to achieve the appraisal quality control requirements of the Agency. A technical review may also be requested
      by OPD staff when problems are detected on the administrative review that cannot or will not be addressed
      by the submitting lender or original appraiser. These problems must be significant and result in an appraisal
      which does not support the value conclusion. OPD staff will document the nature of their concerns on Form
      RD 1922-15. The appraisal will then be forwarded to the Appraisal Services Branch for a technical and/or field
      review prior to approval of the loan. 3. Technical Field Reviews Field reviews will involve on-site visits
      to the subject property and the comparable properties used in the report. Field reviews are completed by Agency
      Appraisal staff on a random, spot-check basis to determine if the appraiser has followed accepted appraisal
      techniques and arrived at a logical conclusion. x USPAP Standard 3 Review is used for technical field reviews.
      The reviewer may use any reporting format that complies with USPAP and is acceptable for use by RD. A director
      of the OPD, or designated supervisory staff, and the appraisal review staff are responsible for the administration
      of residential appraisal compliance and training. Appropriate actions will be initiated by a director of the
      OPD, or designated supervisory staff, and appraisal review staff to ensure compliance with USPAP and SFHGLP
      policies governing the residential appraisal process. F. Appraisals in Remote Rural Areas, on Tribal Lands,
      or in Areas Lacking Market Activity In remote, rural areas, on Tribal lands, or areas with a lack of market
      activity, as identified by the Agency, it may be difficult to obtain adequate comparable sales to appraise
      a property. When the sales comparison approach cannot be developed for a
    drafter_attestation: Verbatim from HB-1-3555 §12.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.5-7
  canonical_id: usda-hb-3555-12.5-7
  section: USDA HB-1-3555 12.5 — Residential Appraisal Reports
  description: '12.5 Residential Appraisal Reports: 05-05-25) PN 640 Guidance documents lack the force and effect
    of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely
    on any guidance that is not available through their guidance portal, except to establish historical facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.5 — Residential Appraisal Reports
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. credible opinion or conclusions regarding
      value, the lender’s appraiser may use other methods in compliance with the Uniform Standards of Professional
      Appraisal Practice (USPAP) and perform an appraisal without completing the sales comparison approach to value.
      Appraisers must explain the exclusion of the sales comparison approach to value and document their efforts
      to obtain comparable market data along with an explanation for any sales data not used. The primary method
      that the appraiser is relying on should be summarized to the extent that the user or a review appraiser can
      understand the reasoning and support of the valuation and conclusions. Remote rural areas are identified by
      the Agency and are defined as areas with all the following characteristics: x Scattered population; x Low
      density of residences; x Lack of basic shopping facilities; x Lack of community and public services and facilities;
      and x Lack of comparable sales data. If the appraiser is using the cost approach, external depreciation based
      on the remoteness of the site must not be considered; however, factors that impact the site such as immediate
      proximity to a feedlot, factory, or other similar considerations should be included. If the appraiser is using
      the income approach, they must explain why the income and expenses used are comparable to the subject property.
      When a market is established in these areas, the Agency will again require the sales comparison approach to
      be used.'
    drafter_attestation: Verbatim from HB-1-3555 §12.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.5-8
  canonical_id: usda-hb-3555-12.5-8
  section: USDA HB-1-3555 12.5 — Residential Appraisal Reports
  description: '12.5 Residential Appraisal Reports: TER AND WASTEWATER DISPOSAL SYSTEMS [7 CFR 3555.201] The site
    must have acceptable water and wastewater disposal systems to ensure the property is decent, safe, sanitary,
    and meets community standards. Public water and wastewater disposal systems are presumed to meet state and lo…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.5 — Residential Appraisal Reports
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: TER AND WASTEWATER DISPOSAL SYSTEMS [7 CFR 3555.201] The site must have acceptable water and
      wastewater disposal systems to ensure the property is decent, safe, sanitary, and meets community standards.
      Public water and wastewater disposal systems are presumed to meet state and local requirements with no additional
      documentation or inspections. Private well and wastewater systems that meet the requirements in HUD Handbook
      4000.1 or meet the requirements of local and/or state health authority do not require additional inspections
      other than water purity tests as
    drafter_attestation: Verbatim from HB-1-3555 §12.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
- id: usda-hb-3555-12.5-9
  canonical_id: usda-hb-3555-12.5-9
  section: USDA HB-1-3555 12.5 — Residential Appraisal Reports
  description: '12.5 Residential Appraisal Reports: 05-05-25) PN 640 Guidance documents lack the force and effect
    of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely
    on any guidance that is not available through their guidance portal, except to establish historical facts.…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - usda-hb-3555
  - section-complete
  primary_source:
    tier: 1
    authority: USDA Technical Handbook HB-1-3555 §12.5 — Residential Appraisal Reports
    source_class: usda-handbook-hb-1-3555
    source_url: https://www.rd.usda.gov/resources/directives/handbooks
    snapshot_id: 0466acd1ea2d17a4
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:22ac6f998ff72578e318fca138ebe80fb18ae2fc701eb5936172f1842679a13a
    paragraph_quote: '05-05-25) PN 640 Guidance documents lack the force and effect of law, unless expressly authorized
      by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available
      through their guidance portal, except to establish historical facts. discussed in this section. Evidence will
      be retained in the lender’s permanent loan file. A. Water Water systems, for existing or new construction,
      that require continuous or repetitive treatment to be safe bacterially or chemically may be used if the individual
      water system, with purification, meets the requirements of the state department of health or other comparable
      reviewing and regulatory authority. 1. Individual Privately Owned x Individual water systems are owned and
      maintained by the homeowner and subject to compliance with all requirements of the local and/or State Health
      Authority codes. Water quality tests are required as follows: o The water quality of the well must meet the
      requirements of the state or local authority. If the state or local authority does not have specific requirements,
      the maximum contaminant levels established by the Environmental Protection Agency (EPA) will apply. o The
      local health authority or a state certified laboratory must perform a water quality analysis. The Safe Water
      Drinking Act does not apply to private wells. Contact the EPA’s Safe Drinking Water Hotline at (800) 426-4791
      for referral to certified labs and other inquiries. o The water analysis report must be no greater than 180
      days old at loan closing. If the Agency is aware of any recent environmental impacts that may render the previous
      analysis invalid (for example – chemical spills, natural disasters, etc.) a new report may be required. x
      The well location for individual water supply systems must be measured to establish the distance from the
      septic system. The separation distance between the well and septic systems must meet the SF Handbook (HUD
      Handbook 4000.1) or be found acceptable by the Local and/or State Health Authority. x Individual water systems/wells
      should be located on the subject property site. If located on an adjacent property, evidence of water rights
      and recorded'
    drafter_attestation: Verbatim from HB-1-3555 §12.5 body (max-gap occurrence), snapshot 0466acd1ea2d17a4; substring-verified.
  judgment: false
