Appraisals Are Changing: The 10 Biggest UAD 3.6 Updates, Explained

For more than 20 years, home appraisals have looked almost the same. Same forms, same boxes, same shorthand codes that only appraisers and underwriters could read. That’s about to change.

On November 2, 2026, a new appraisal format called UAD 3.6 becomes mandatory for conventional loans sold to Fannie Mae and Freddie Mac. It’s the first major change to how appraisals are reported since 2005, and the biggest update to appraisal data standards since the original Uniform Appraisal Dataset (UAD) launched in 2011. FHA, VA and USDA loans are expected to follow in the future.

Whether you’re buying, refinancing or helping clients do either, here’s what’s changing and what it means for you.

The Big Idea: The Report Should Fit the House

The old system asked a simple question: which form does this house fit into? Single-family homes went on one form, condos on another and multi-family properties on a third. If a house didn’t fit neatly, the appraiser worked around it.

UAD 3.6 flips that around. Instead of forcing every house into a fixed form, it builds a dynamic report that adapts to the property being appraised. The information required can vary from home to home, and the result is a more complete, more consistent and easier-to-read picture of the property.

Here are the 10 changes that matter most.

1. One Dynamic Report Replaces the Old Forms

Before: Appraisers had to choose a specific static form for the property type: the 1004 for single-family homes, the 1073 for condos and the 1025 for 2–4 unit properties. If the property type changed mid-transaction, the appraiser had to start over on a new form, which delayed underwriting and loan approval.

Now: A single, data-driven report (the new Uniform Residential Appraisal Report, or URAR) adapts to whatever property is being appraised. No more starting over because the house didn’t fit the form.

2. Easier to Read, Faster to Underwrite

Before: Reports used small, locked text fields. Appraisers kept their comments short, invented abbreviations to squeeze descriptions into the space, or added pages of addenda at the back. That left underwriters and borrowers hunting through the report for important details.

Now: Expandable comment areas sit right in the related section of the report, and photos are placed next to the descriptions they support. Information shows up in the same place every time, so it’s easier to find and easier to search.

3. Plain English Replaces Appraisal Code

Before: Pre-printed forms relied on shorthand like C3 for condition, Q4 for quality and GLA for square footage. Amenities were squeezed into abbreviations like “Pch,” “Pt” and “FP.”

Now: Codes give way to everyday real estate language, like “Updated kitchen within 5 years” or “Finished Area Above Grade.” For the first time, most homeowners will be able to read their own appraisal and understand it.

4. Finally, Your Basement Counts

Before: Square footage was based on Gross Living Area (GLA), which only counted above-grade space. Finished rooms in the basement weren’t part of the total room, bedroom or bath count. Plenty of homeowners wondered why the bedroom they’d finished downstairs didn’t show up on the report.

Now: Living area is broken down level by level. Room, bedroom and bath counts are reported for every level, and finished space is labeled clearly as above-grade or below-grade. That finished basement is now documented properly instead of getting lost.

5. ADUs and Multi-Structure Properties Get Their Own Space

Before: Accessory dwelling units (ADUs), guest houses and large workshops were crammed into a generic “additional features” box on the sales grid, which caused confusion and underwriting bottlenecks.

Now: Repeatable data sections let the appraiser build a separate profile for every structure on the lot. With ADUs becoming more common, this is a meaningful upgrade.

6. Room-by-Room Condition Ratings

Before: The whole house got one overall condition rating (like C3 or C4), even if part of it was brand new and part of it was original. Picture a 1950s home with a fully updated main level and bedrooms that haven’t been touched yet. One rating had to cover all of it.

Now: Appraisers can rate condition and quality room by room and level by level. An updated kitchen gets credit as an updated kitchen, and a dated bathroom is noted as dated, without one dragging down or inflating the other.

7. Green and Solar Features Get Recognized

Before: Energy-efficient homes, solar panels and energy certifications had no dedicated place in the report and were easy for underwriters to miss.

Now: Dedicated fields capture energy-efficient features, solar ownership (leased vs. owned, which matters a lot) and HERS ratings.

8. Clearer Tracking of Seller Concessions and Financing

Before: Seller concessions and rate buydowns got a brief note in a small text box, leaving room for interpretation about how they affected the home’s value.

Now: Detailed transaction fields separate out seller concessions, closing cost credits and financing structures, so their impact on value is documented clearly and consistently.

9. More Work Up Front, Fewer Revisions Later

Before: Without standardized reporting, underwriters often sent revision requests back and forth, which could slow down appraisal approval.

Now: Appraisal software runs strict data validation checks before the report can be delivered and exported in the new MISMO 3.6 format. More of the work happens up front, and the goal is fewer surprises and faster approvals at the end.

10. Expect a Learning Curve (and Possibly Higher Fees) at First

Appraisers have used the old forms for decades, so this is a real adjustment for the industry. The new system works best with mobile software that lets appraisers enter data as they walk through the home. During the rollout, expect:

• Longer on-site inspections, since more data is captured on site
• Longer turn times while appraisers get comfortable with the new format
• Possible fee increases during the early transition period

These growing pains should ease as appraisers become proficient with the new system.

What This Means for You

If you’re buying or refinancing: Your appraisal will be more detailed, and you’ll be able to read and understand it. Plan for appraisal timelines that may look different than they have in the past, especially close to and just after the November 2 deadline. The best move is to talk with your loan officer early. They can help you set realistic timelines and flag anything about your property, like a finished basement, an ADU or solar panels, that the new report will capture differently.

If you’re a real estate agent: Build a little extra appraisal time into contracts that close around the transition, and help sellers put together documentation for recent updates, solar ownership and any additional structures on the property.

UAD 3.6 FAQs

What is UAD 3.6?

UAD 3.6 is the updated Uniform Appraisal Dataset from Fannie Mae and Freddie Mac. It replaces the traditional appraisal forms (like the 1004, 1073 and 1025) with one dynamic report, the redesigned Uniform Residential Appraisal Report (URAR), which adapts to the property being appraised and uses plain-English descriptions instead of shorthand codes.

When does UAD 3.6 take effect?

UAD 3.6 becomes mandatory on November 2, 2026 for conventional loans sold to Fannie Mae and Freddie Mac. After that date, appraisals for those loans must be completed in the new format.

Does UAD 3.6 apply to FHA, VA and USDA loans?

Not yet. The November 2, 2026 mandate applies to conventional loans. FHA, VA and USDA are expected to adopt the new format in the future but haven’t announced mandatory dates. Your loan officer can tell you which format applies to your loan.

Will my finished basement count on the appraisal now?

Finished basement space will be documented much more clearly. UAD 3.6 reports living area level by level, labels finished space as above grade or below grade, and includes room, bedroom and bath counts for every level, basements included. How that space affects value is still up to the appraiser’s analysis of the local market.

Will UAD 3.6 change my home’s appraised value?

The new format changes how your home is described and documented, not the basic way value is determined. Appraisers still compare your home to similar recent sales. Because the report captures more detail, such as room-by-room condition, ADUs and solar ownership, features that were easy to overlook before are more likely to be clearly documented.

Will appraisals take longer or cost more under UAD 3.6?

They may, at least at first. Appraisers are learning a new system that collects more data on site, so expect longer inspections, longer turn times and possibly higher fees during the rollout. Those growing pains should ease as appraisers get comfortable with the new format.

Can I talk to my appraiser about the changes?

Federal appraiser independence rules keep appraisers separate from the parties to the loan, and on most loans the lender orders the appraisal through an appraisal management company. The best person to ask about timelines, fees or how your property will be reported is your loan officer.

The Bottom Line

UAD 3.6 is the biggest change to home appraisals in a generation, and most of it is good news: reports that fit the house, plain English instead of codes, credit for finished basements and room-by-room condition ratings that reflect how people actually update their homes. There will be a learning curve, but the destination is clearer, more consistent appraisals for everyone.

Have questions? Let’s chat. Contact a New Story Lending loan officer or explore our loan options to see how these changes could affect your next purchase or refinance.