Every conventional mortgage secured by a single-family home requires an appraisal completed on the 1004 form. For lenders, understanding what this form covers — and where deficiencies occur — is essential for protecting loan quality and avoiding repurchase risk. R3 AMC coordinates 1004 appraisal orders across all 50 states, delivering compliant, fully reviewed reports that protect lenders at every closing.
What Is the 1004 Appraisal Form?
The 1004 form, officially titled the Uniform Residential Appraisal Report (URAR), is the standard appraisal format required by Fannie Mae and Freddie Mac for conventional mortgage loans on one-unit residential properties. It documents a licensed appraiser’s opinion of market value and must be submitted through the Uniform Collateral Data Portal (UCDP) before loan delivery to the GSEs.
The form was developed to standardize how appraisers report their work across the mortgage industry, making it easier for lenders, investors, and agencies to evaluate collateral consistently. It covers everything from the physical condition of the property to neighborhood market trends and the appraiser’s comparable sales analysis.
Most conventional purchase and refinance loans use the 1004 as the primary appraisal instrument. Condominiums require a different form (the 1073), and two-to-four-unit properties require the 1025. For single-family detached and attached homes, the 1004 remains the standard instrument in conventional mortgage underwriting.
Is the 1004 form the same as the URAR?
Yes. The 1004 and the URAR are the same document. “1004” refers to the Fannie Mae form number, while “URAR” stands for Uniform Residential Appraisal Report. Freddie Mac uses its own form numbering (Form 70) for the same report. Lenders, appraisers, and AMCs use all three terms interchangeably.
What Does the 1004 Appraisal Form Cover?
The 1004 is divided into clearly defined sections, each capturing a different layer of the appraiser’s analysis. Understanding what each section covers helps lenders identify where deficiencies most commonly arise during underwriting and post-close review.
Subject Property Information: Captures the legal address, occupancy status, ownership history, and property rights being appraised. Errors here can create chain of title and eligibility issues.
Neighborhood Analysis: Documents market conditions, property value trends (increasing, stable, or declining), and supply and demand dynamics in the immediate area. UAD requires standardized codes for these fields.
Site Description: Covers lot size, zoning, flood zone status, utilities, and adverse site characteristics that affect value or marketability.
Improvement Description: Documents construction quality, year built, condition ratings, above-grade square footage, room count, and recent updates.
Sales Comparison Approach: The core valuation section. The appraiser presents a minimum of three comparable sales, makes adjustments for differences, and reconciles those comps into a value conclusion. This section is the most heavily scrutinized in quality control review.
Reconciliation and Final Value Opinion: States the appraiser’s concluded market value, the effective date, and any conditions or extraordinary assumptions that affect the opinion.
What are the most common 1004 deficiencies that trigger repurchase demands?
The most frequent 1004 deficiencies include unsupported comparable selection, adjustments that are not market-derived, failure to disclose property conditions, and UAD field errors. These surface during GSE quality control reviews and post-close audits. An AMC with a structured quality control process — like R3 AMC — catches these issues before delivery rather than after the loan has funded.
Why the 1004 Form Matters for Lender Compliance
For lenders selling loans to Fannie Mae or Freddie Mac, the 1004 must meet agency data standards as part of the Uniform Appraisal Dataset (UAD) requirements. UAD governs how specific fields on the form must be completed — using standardized codes and formats that enable automated review.
Every 1004 appraisal must also be electronically submitted through the Uniform Collateral Data Portal (UCDP) before loan delivery. UCDP applies automated validation checks and returns a Submission Summary Report (SSR) that lenders must review prior to closing. Fatal hard stops require resolution before the loan can be delivered.
With the rollout of UAD 3.6 and the redesigned URAR, the data structure and requirements for appraisal reports are changing significantly. R3 AMC has published a detailed breakdown of what lenders need to know: UAD 3.6 and the New URAR: What Lenders and Appraisers Need to Know.
R3 AMC reviews every 1004 against UCDP submission requirements and UAD field compliance as part of its standard quality control process — before the report reaches the lender. Learn more about R3 AMC’s appraisal management services for lenders.
For additional guidance on UAD compliance and appraisal data standards, Fannie Mae maintains current resources on this website.
Frequently Asked Questions
When is a 1004 appraisal required for a mortgage?
A 1004 appraisal is required for conventional mortgage loans secured by a single-family one-unit property when the transaction does not qualify for an appraisal waiver. This includes most purchase transactions and many rate-and-term refinances. Fannie Mae and Freddie Mac specify the 1004 as the standard form, and lenders must use it for agency-eligible loan delivery.
How long does a 1004 appraisal take to complete?
A 1004 appraisal typically takes 5 to 10 business days from order placement to final report delivery, depending on appraiser availability, property complexity, and revision cycles. R3 AMC targets a 5 business day average turn time and tracks delivery performance at the order level to protect closing dates.
What is the difference between a 1004 and a 1004D appraisal?
The 1004 is the original full appraisal report. The 1004D is used for appraisal updates and completion certifications — typically required when a property was appraised in proposed or under-construction condition and needs a final inspection to confirm the work is complete. Lenders often require a 1004D before closing on new construction loans.
Can a lender use a 1004 appraisal ordered by a different lender?
In certain circumstances, yes. This is called an appraisal transfer. Under Appraiser Independence Requirements (AIR) and FIRREA, a lender may accept an appraisal originally ordered by another lender if it was obtained in compliance with applicable regulations and the receiving lender assumes responsibility for the report. The receiving lender must conduct their own documented review before relying on it.
What happens when a 1004 appraisal comes in below the purchase price?
When a 1004 comes in below contract price, the lender can only lend based on the appraised value. A Reconsideration of Value (ROV) can be submitted through the AMC, allowing the appraiser to review additional comparable data that may have been overlooked. R3 AMC manages ROV requests using ValueTest.ai to identify legitimate comparable evidence quickly and in full compliance with AIR requirements.