Good Morning,

How long is an appraisal valid for (for a HELOC)? 6 mos, 12 mos???

Thank you.

That depends on your loan policy, the size of the new loan, the level of risk you would like to assume, and other factors.

The uniform standards of practice for appraisers places a limit on the useful life of an appraisal at something like 90 days, I think.

I thought there were regulatory guidelines on this?

I thought there were regulatory guidelines on this?

The Interagency Appraisal and Evaluation Guidelines address the validity of existing appraisals.

The section heading Valid Appraisals and Evaluations states, "The agencies allow an institution to use an existing appraisal or evaluation to support a subsequent transaction, if the institution documents that the existing estimate of value remains valid. Therefore, a prudent appraisal and evaluation program should include criteria to determine whether an existing appraisal or evaluation remains valid to support a subsequent transaction. Criteria for determining whether an existing appraisal or evaluation remains valid will vary depending upon the condition of the property and the marketplace, and the nature of any subsequent transaction. Factors that could cause changes to originally reported values include: the passage of time; the volatility of the local market; the availability of financing; the inventory of competing properties; improvements to, or lack of maintenance of, the subject property or competing surrounding properties; changes in zoning; or environmental contamination. The institution must document the information sources and analyses used to conclude that an existing appraisal or evaluation remains valid for subsequent transactions."