The New URAR Appraisal Form: What It Means for Non-QM Borrowers (Pros and Cons)
One new appraisal report is replacing the forms your lender has used for decades. Here is what changes, what does not, and how to protect your closing date.
If your closing is coming up, you may have heard that the appraisal is changing. It is true, and it is also the kind of news that gets repeated wrong, so people end up worried about the wrong things.
Here is the short version. For loans sold to Fannie Mae and Freddie Mac, one new report called the URAR, built on a data standard called UAD 3.6, becomes mandatory on November 2, 2026. It replaces the old family of forms like the 1004, 1073 and 1025.
The question I am getting from non-QM borrowers is the better one: does this touch my loan? The short answer is sometimes, indirectly. Let me walk you through what is mandatory, what is up to your lender, and what to do now so a form change never costs you a closing date.
Closing in the next 60 days?
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Check My Appraisal TimelineWhat the New URAR Actually Is
For years, appraisers picked a form by property type: the 1004 for a single-family home, the 1073 for a condo, the 1025 for a small multifamily, and others. The new URAR replaces that menu with one dynamic report that expands or contracts depending on the property and the assignment.
Industry breakdowns describe a report of roughly 25 to 30 pages with about 29 sections, some always included, some appearing only when relevant (a condo project section, for example), and some repeating, like a unit interior for each unit or accessory dwelling. Fannie Mae’s own FAQ is the best place to confirm the exact list of retired forms.
| What changes | In plain English |
|---|---|
| One report, many property types | The form adapts instead of the appraiser switching forms |
| More structured data | Dropdowns and standard fields replace more free-text narrative |
| Separate interior and exterior ratings | Condition and quality are rated separately, so one dated area does not drag everything down |
| Extra detail on features | Finished basement levels, accessory dwellings, solar ownership, and energy features get their own fields |
| Data checks before delivery | Software validates the report so fewer get kicked back for fixes |
What does not change: the appraiser still determines value by comparing your property with recent, similar sales. This is a documentation overhaul, not a new valuation method.
Does It Apply to Non-QM Loans?
The November 2 deadline applies to appraisals submitted for loans delivered to Fannie Mae and Freddie Mac. Non-QM loans like DSCR, bank statement, P&L and ITIN programs are not sold that way, so there is no government-sponsored mandate on them. Each investor sets its own appraisal requirements.
In practice, though, appraisers and appraisal software are rolling out the new report across their whole workload, so non-QM files can end up touched by it. Treat the table below as a guide to ask about, not a rulebook.
Which Appraisal Path Fits My Loan?
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The Pros and Cons for Non-QM Borrowers
| Possible upside | Possible downside |
|---|---|
| Fairer credit for upgrades. Separate interior and exterior ratings and room-level detail can show a renovated kitchen or bath clearly. | Slower turn times while appraisers learn it. Reports capture more data, and early reports often take longer. |
| Clearer documentation of extras. Accessory dwellings, finished basements and solar get their own fields, which can support value and rent. | Possible fee increases. More data can mean more appraiser time, and some fees may rise during the transition. |
| Fewer back-and-forth fixes. Built-in data checks should catch missing items before the report arrives. | Format mismatch. A lender might ask for a legacy form, or a different format, on a non-QM file. Confirm before ordering. |
| More consistent, comparable reports across the market, which helps lenders review files faster. | DSCR rent-schedule uncertainty. The legacy 1007 rent schedule is among the retired forms for agency loans, so how market rent is reported on investor files may vary by lender for a while. |
| Better handling of mixed property types without restarting on a new form. | More visible condition issues. Greater detail can surface deferred maintenance that a shorter report might have skimmed. |
For a DSCR investor, the part to watch is rent. Your qualifying ratio depends on market rent, and the way that figure is documented may shift. Ask your broker which rent documentation your lender requires, and have your lease, rent roll and any short-term rental history ready.
Your Appraisal-Ready Checklist
This works for any loan type. The more complete your information, the fewer questions and delays.
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How to Protect Your Closing Date
- Order early and ask for the format. Your broker should specify the report type at ordering.
- Add buffer. If you are under contract, ask your agent about a few extra days for the appraisal contingency.
- Do not assume a lower value. A new form changes how the property is documented, not how it is valued.
- Keep your rate lock in mind. A slow appraisal can push you toward an extension, so confirm your lock length.
Sources for the dates and form details: Fannie Mae UAD 3.6 FAQ and McKissock’s implementation summary. Non-QM appraisal requirements are set by each lender and can change.
Want to know what applies to your file before the appraiser does?
Send me the property and loan type. I will tell you what to expect and how to keep your timeline safe.
Schedule My Appraisal Strategy CallThe New URAR Appraisal: Common Questions
What is the new URAR appraisal form?
The URAR is a single, dynamic appraisal report built on the UAD 3.6 data standard. It replaces legacy forms like the 1004 for single-family, the 1073 for condos and the 1025 for small multifamily on loans sold to Fannie Mae and Freddie Mac.
When does the new URAR become mandatory?
November 2, 2026 for new appraisals submitted to the Uniform Collateral Data Portal for Fannie Mae and Freddie Mac loans. Before that date, lenders could choose between the old and new formats.
Does the new URAR apply to DSCR and bank statement loans?
Not directly. Non-QM loans are not delivered to Fannie Mae or Freddie Mac, so each lender sets its own appraisal requirements. Appraisers and software are adopting the new report broadly, so it may still appear on non-QM files.
Will the new appraisal form change my home’s value?
No. Value is still based on comparable sales. The change is in how the property, condition and features are documented.
Will appraisals take longer or cost more?
Early in a transition, longer turn times and some fee increases are possible because the report captures more data. Building a few extra days into your timeline is a smart precaution.
What happens to the rent schedule for DSCR loans?
The legacy rent schedule is among the forms retired for agency loans, and how market rent is documented on investor loans can vary by lender. Ask your broker what your lender requires, and have your lease or rent history ready.