Modified Appraisal Processes for Some Federal Loan Programs

LOUISIANA REALTORS • March 30, 2020
During this COVID-19 national emergency, lenders are sometimes unable to obtain an appraisal based on a full interior and exterior inspection of the subject property. In response, the use of modified appraisal processes has been approved for use in many federal loan programs.  

Each individual lender will determine if these modified appraisal practices are acceptable for the appraisal of a piece of property. See below for more information about these modified appraisal processes for each entity:
  • Residential Appraisal Reports – Existing Dwelling
For purchase and non-streamlined refinance transactions, when an appraiser is unable to complete an interior inspection of an existing dwelling due to concerns associated with the COVID-19 pandemic, an “Exterior-Only Inspection Residential Appraisal Report” will be accepted.

  • Repair Inspections – Existing Dwelling
Loans for which a completion certification is not available due to issues related to the COVID-19 pandemic, a letter signed by the borrower confirming that the work was completed is permitted. Lenders must also provide further evidence of completion, which may include photographs of the completed work, paid invoices indicating completion, occupancy permits, or other substantially similar documentation. 

  • Verbal Verification of Employment
Lenders must document and verify the borrowers annual and repayment income in accordance with Agency regulations. When the lender is unable to obtain a Verbal Verification of Employment (VVOE) within 10 business days of loan closing due to a temporary closure of the borrower’s employment, alternatives should be explored. 
    • In the case of a reduction of income, the borrower’s reduced income must be sufficient to support the new loan payment and other non-housing obligations. Borrower’s with no income at the time of closing are not eligible for SFHGLP loans regardless of available cash reserves.



Realtor helping home-buyers
By Louisiana REALTORS® July 16, 2025
From flood zones to hurricane season, Louisiana clients have big questions. Learn how REALTORS® can confidently respond with local insights that build trust and close deals.
How REALTORS® Can Simplify the Homebuying Process for First-Time Homebuyers
By Louisiana REALTORS® July 11, 2025
Buying a home for the first time can be a daunting experience. As a Louisiana REALTOR®, your ability to simplify the process not only eases your client’s stress but also builds trust and increases your chances of referrals down the line.
How REALTORS®  Help Home Sellers Navigate Multiple Offers with Confidence
By Louisiana REALTORS® July 3, 2025
Navigating multiple offers isn't just about choosing the highest bid. Here's how REALTORS® guide sellers through this critical phase with strategy and confidence.
Show More