source:
  type: guide
  id: fnma-sel-b4-1.4-10
  authority: Fannie Mae Selling Guide B4-1.4-10 — Value Acceptance
  description: Fannie Mae Selling Guide B4-1.4-10 — Value Acceptance.
  coverage_tier: operative
obligations:
- id: fnma-sel-b4-1.4-10-full
  canonical_id: fnma-sel-b4-1.4-10-full
  section: Fannie Mae Selling Guide B4-1.4-10 — Value Acceptance
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B4-1.4-10 — Value Acceptance
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B4-1.4-10, Value Acceptance (12/10/2025) Introduction This topic
      contains information about value acceptance, including: Overview Prior Appraisal
      Requirements Published May 6, 2026 614 Eligible Transactions Ineligible Transactions
      Representations and Warranties Rural High-Needs Value Acceptance Exercising
      Value Acceptance Uniform Appraisal Dataset (UAD) 3.6 Policy Overview For certain
      loan caseﬁles, DU oﬀers value acceptance, in which case an appraisal is not
      required. For loan caseﬁles that are not eligible for value acceptance, DU will
      require an appraisal reported on the appropriate appraisal report form for the
      type of property being appraised. Prior Appraisal Requirements For value acceptance
      to be considered, generally a prior appraisal must be found for the subject
      property in Fannie Mae’s Collateral Underwriter (CU) data. When required, DU
      will compare the address for the subject property to the property addresses
      found in CU. DU will use the information from the prior appraisal to determine
      if the loan caseﬁle is eligible for value acceptance. In some cases, the prior
      appraisal may not be acceptable. For example, if a CU “Overvaluation Flag” was
      issued on the prior appraisal, or the appraisal could not be scored, that prior
      appraisal will not be used and value acceptance will not be oﬀered on the new
      loan caseﬁle. Eligible Transactions A value acceptance oﬀer will be considered
      for the following transactions: one-unit properties, including condos; principal
      residence and second home transactions; investment property reﬁnance transactions;
      certain purchase, limited cash-out, and cash-out reﬁnance transactions; and
      DU loan caseﬁles that receive an Approve/Eligible recommendation. Ineligible
      Transactions The following transactions are not eligible for a value acceptance
      oﬀer: two- to four-unit properties; co-op units and manufactured homes; proposed
      construction; construction-to-permanent loans (single-close and two-close);
      HomeStyle Renovation and HomeStyle Refresh loans; leasehold properties; Texas
      Section 50(a)(6) loans; Published May 6, 2026 615 community land trusts or other
      properties with resale price restrictions, which include loan caseﬁles using
      the Aﬀordable LTV feature; transactions where either the purchase price or estimated
      value provided to DU is $1,000,000 or more; transactions using gifts of equity;
      DU loan caseﬁles that receive an Ineligible recommendation; and manually underwritten
      loans. Note: DU may oﬀer value acceptance on a recently constructed property
      (i.e., new construction) when there is an existing “as is” prior appraisal for
      the subject property. For example, an appraisal of the subject property may
      have been performed for a diﬀerent lender or borrower, but that loan did not
      close. The lender may execute the value acceptance oﬀer when the loan meets
      all other eligibility criteria for the transaction. Furthermore, the lender
      may not exercise a value acceptance oﬀer and must order an appraisal if one
      or more of the following applies: DU was unable to identify ineligible criteria
      in the list above (for example, Texas Section 50(a)(6) loans); the lender is
      required by law to obtain an appraisal (see A3-2-01, Compliance With Laws);
      the lender is using rental income from the subject property to qualify the borrower;
      or the lender believes that an appraisal is warranted based on additional information
      the lender has about the property or subsequent events. Note: The lender may
      not exercise a value acceptance oﬀer if an appraisal is obtained for the transaction.
      See B5-7-02, High LTV Reﬁnance Underwriting, Documentation, and Collateral Requirements
      for the New Loan for additional information about high LTV reﬁnance value acceptance.
      Representations and Warranties When a loan caseﬁle is eligible for value acceptance
      and the oﬀer is exercised by the lender, Fannie Mae accepts the value estimate
      submitted by the lender as the value for the subject property. See A2-2-06,
      Representations and Warranties on Property Value for more information. Rural
      High-Needs Value Acceptance In selected rural high-needs areas, Fannie Mae may
      oﬀer value acceptance through DU for certain transactions. This value acceptance
      may be combined with other loan products, such as HomeReady. The rural high-needs
      value acceptance oﬀer will be considered for the following transactions only:
      loan caseﬁles that receive an Approve/Eligible recommendation; purchase transactions;
      one-unit principal residence properties (excluding manufactured homes); borrowers
      with income at or below 100% of the area median income; and LTV ratios up to
      97% and CLTV ratios up to 105% with a Community Seconds. Published May 6, 2026
      616 The following are ineligible for rural high-needs value acceptance: cash-out
      or limited cash-out reﬁnances; second homes and investment properties; and all
      other transactions that are ineligible for value acceptance as listed above.
      The following table provides the requirements related to the home inspection.
      These requirements must be met for the lender to exercise the rural high-needs
      value acceptance oﬀer. ✓ The lender must obtain a home inspection to determine
      the property condition. The inspection report must be retained in the loan ﬁle
      and made available to Fannie Mae upon request. review the inspection report
      to verify the property condition. The content of the inspection report must
      be suﬃcient for the lender to determine whether the property is safe, sound,
      and structurally secure. Any issues that compromise safety, soundness, or structural
      integrity must be repaired before loan delivery. obtain an aﬃdavit signed by
      the borrower(s) conﬁrming that they received a copy of the property inspection
      report, read the report, and were notiﬁed of any lender-required repairs. conﬁrm
      that the purchase contract contains an inspection contingency that oﬀers the
      borrower(s) enough time to cancel the contract without penalty if they so choose,
      should the inspection reveal an issue with the property. conﬁrm that the inspector
      has liability insurance. use a professional inspector that meets the state license
      and education requirements for those states that regulate inspectors. Note:
      In states that do not have inspector licenses, inspectors that are professionally
      accredited members in good standing of a nationally recognized property inspection
      organization must be used. The national organization must require education,
      testing, and adherence to a code of ethics and to standards of practice. represent
      and warrant that the property is safe, sound, and structurally secure and that
      the property is not in C6 condition. See A2-2-06, Representations and Warranties
      on Property Value and B4-1.3-06, Property Condition and Quality of Construction
      of the Improvements for additional information. Exercising Value Acceptance
      Published May 6, 2026 617 A lender may only exercise value acceptance if the
      ﬁnal submission of the loan caseﬁle to DU resulted in a value acceptance oﬀer,
      an appraisal is not obtained for the transaction, and the value acceptance oﬀer
      is not more than four months old on the date of the note and the mortgage. Lenders
      that elect to exercise value acceptance must include SFC 801 at delivery. Lenders
      may not adversely select against Fannie Mae in determining which value acceptance
      oﬀers to accept. Fannie Mae may monitor the lender’s exercise of value acceptance
      oﬀers and delivery of loans to Fannie Mae, and may take appropriate measures
      if adverse selection is identiﬁed. Uniform Appraisal Dataset (UAD) 3.6 Policy
      Lenders using UAD 3.6 must follow the requirements in the UAD 3.6 Policy Supplement.
      Recent Related Announcements The table below provides references to recently
      issued Announcements that are related to this topic. Announcements Issue Date
      Announcement SEL-2025-10 December 10, 2025 Announcement SEL-2025-07 September
      03, 2025 Announcement SEL-2025-04 June 04, 2025 Announcement SEL-2023-02 March
      01, 2023 Announcement SEL-2022-10 December 14, 2022 Announcement SEL-2020-03
      June 03, 2020 Announcement SEL-2019-07 August 07, 2019 Published May 6, 2026
      618'
  judgment: false
