The FNMA Form 1025, also known as the Small Residential Income Property Appraisal Report, is designed for the appraisal of a 2 to 4 family residential income property. This type of report is to be used exclusively for mortgage lending, servicing and portfolio management by the mortgage lending industry.
This appraisal type includes a complete interior and exterior inspection of the subject property and an exterior inspection of the comparable sales. This form is not to be used for a single family property, condominium or cooperative unit or an individual mobile home unit (follow links to see these types of report types).
Following is a list of the typical contents of this appraisal report form type.
- Title Page - Identifying the subject property and including a front photograph.
- Appraisal Form FNMA Form 1025
- Page 1 - Description of neighborhood, subject site and subject improvements.
- Page 2 - Comparable rental properties, income and expense analysis, prior sales data.
- Page 3 - Sales Comparison Approach (3 comparable sales) and Income Approach (if applicable) to values, effective date of appraisal, repair or other conditions of appraisal and value reconciliation.
- Page 4 - Additional comments, details of market conditions, details of repair conditions, Cost Approach to value with estimated land value (if applicable).
- Comparable Sales #4, #5 and #6 - When selected as appropriate to report by the appraiser, or requested by the client (see options noted below).
- Sketch - Subject property sketch, showing the calculations, and including attached amenities and detached structures on the same subject site.
- Builders Floor Plan - for new or newer construction, when made available to the appraiser.
- Location Map - Showing the subject property and comparable sales.
- Subject Photographs
- Exterior photographs of the subject property including; front, rear and street scene.
- Exterior photographs of the subject property amenities such as; pool, cabanas, outbuildings, yard views and potential deficiencies noted (as contracted by the client engagement request).
- Interior photographs of the subject property showing sampling of rooms, mechanical systems, recent improvements and potential deficiencies (as contracted by the client engagement request).
- Comparable Sales Photographs - Photograph of the comparable sale from a public street.
- Additional Appraisal Content
- Scope of the Appraisal - Discussion of the appraisal process, due diligence and limitations.
- Intended Use - Identifies the intended use of the report (mortgage finance).
- Intended User - Identifies the intended user of the report (lender/client).
- Definition of Market Value - state defines the Market Value definition used in the report.
- Statement of Assumptions and Limiting Conditions
- Appraisers Certification
Optional Additional Appraisal Report Content
This is a brief list of additional services that can be added to the basic report discussed above, for an additional fee, as engaged by the requesting client.
- Additional Comparable Sales (sold comps, listing or pending sales) - as required by the client at the time of engagement or upon subsequent request.
- FNMA Form1004D - Summary Appraisal Update and/or Certification of Completion - This form is to be used to update an appraisal to the current market. This form can also be used to certify the completion of required repairs. This report must be completed by the original appraiser/appraisal firm.