25-41: Freddie Mac Hybrid Appraisal Expansion

04/08/2025
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As announced in Freddie Mac Bulletin 2025-1, Freddie Mac is expanding eligibility for hybrid appraisals. This change is available for Loan Product Advisor (LPA) submissions and resubmissions on or after 04/07/2025.

Hybrid appraisal reports are now eligible for certain LPA Accept/Eligible loans specifying eligibility.

  • Hybrid appraisals must be completed on:
    • Uniform Residential Appraisal Report Hybrid Form 70H; or
    • Individual Condominium Unit Appraisal Report Hybrid form 465H
  • Purchase, no cash-out, and cash-out refinance transactions are eligible
  • All occupancy types are eligible
  • Eligible transactions include but are not limited to:
    • 1-unit properties including condominiums and PUDs
    • 1-unit properties with an ADU
    • Texas 50(a)(6)
  • Ineligible transactions include but are not limited to:
    • Manufactured homes including CHOICEHomes
    • 2-to-4-unit properties
    • Proposed construction
    • Construction conversion transactions (including 2x close transactions)
    • GreenCHOICE Mortgages
  • Form 70 or 465 upgrade requirements:
    • The appraiser must perform an interior and exterior inspection reported on Form 70 or 465, as appropriate, when one or more of the following conditions exist.
      • The PDR does not provide sufficient information about both the interior or exterior physical characteristics of the subject property for an appraiser to develop a credible and adequately supported appraisal repot.
      • The appraiser cannot reconcile significant discrepancies among available data sources, including the PDR, to develop a credible and adequately supported appraisal report.

Note: A hybrid appraisal may continue to be obtained if a loan loses ACE+ PDR eligibility.

Please refer to the Freddie Mac Seller Guide for a complete list of eligible and ineligible transaction types as well as full hybrid appraisal requirements.

Please contact your Sales Representative with any questions.