This is a topic that each underwriter and lender likely may have varying opinions on but here is what Fannie Mae and Freddie Mac say about it.

What happens when you have a purchase agreement on a home, then the home is inspected and completed and then you have an amendment AFTER the inspection date of the appraisal.

The key here is the date of an amendment to a contract and the date of inspection on the appraisal report. That is the key to what must and must not be reported on the appraisal.

An appraisal is always the information as of the inspection date of the property. What happens after that date is not of concern to the agencies. It is kind of like getting an appraisal and finding out a house sold a week later right next door that gives it more value. That does not matter because on the date of the inspection it had not sold which makes it unusable.

Here are the rules as it pertains to amendments to contracts AFTER the appraisal inspection has been completed. If the amendment was prior to, you likely have to get the appraisal corrected.

FANNIE

If the amendment does NOT affect the description of the property then you do not need to provide the amendment to the appraiser nor change the appraisal.

For example, Fannie says if an amendment AFTER the inspection date includes changes to the sale price, transaction terms, financing concessions, seller paid closing costs, names or initials, closing date or correction of minor clerical error like misspellings you DO NOT have to change the appraisal.

FREDDIE

Freddie agrees with Fannie in that if it does not impact the description of the property you do not need to update appraisal or send an amendment to the appraiser.

Freddie gives examples like changes to sales price, financing or sales concessions, date revisions or typographical errors DO NOT need to be changed.

FHA

HUD only wants the information of the terms and agreement of the purchase agreement that was in force at the time of inspection. They go so far as to say they do not want it changed and it would be mis-leading if they did change it.

If the lender does require a change the appraiser cannot change it on page one but can put it as a comment to appease the lender and must change the date the appraisal is signed but not the inspection date. Flagstar does not require this fyi.

VA

VA is a bit different. If the purchase agreement is amended after the inspection date and prior to close date the lender is to do due diligence to determine if the amendment could affect the value of the property. IF SO, then the amendment is to be forwarded to the appraiser to make a decision if it impacts value.

If the appraiser deems it may impact value they can classify it as a new assignment to be reviewed up to the full cost of a new appraisal.

USDA

USDA is silent on this topic. But since USDA requires properties to meet HUD Minimum Property Standards most lenders such as Flagstar will follow FHA rules.

As a reminder though if terms or agreements change then all of those changes must be changed on the final GUS commitment which USDA themselves sign off on.

Flagstar does not have any overlays as it pertains to above. If you get an underwriter that may be new and asks for it because a previous company required it let me know and we can get it cleared for you.