FHA loans · HUD Handbook 4000.1Switching lenders on an FHA loan: what happens to the appraisal
On an FHA loan the appraisal can follow the buyer to a new lender. When a borrower switches lenders, the first lender must, at the borrower's request, transfer the appraisal to the second lender within five business days; it does not have to do so until it has been reimbursed for the appraisal's cost. The appraisal does not need to be readdressed – the client name can stay – and the new lender may not ask the appraiser to readdress it. A lender may never order another appraisal to get a higher value or to eliminate or reduce required repairs. The second lender may order a new appraisal only if its underwriter finds the first one materially deficient, if the first appraiser is barred from working for it, or if the first lender fails to send the appraisal in time and the delay would harm the borrower – a lost rate lock, a missed contract deadline, foreclosure or late fees. The original lender can order a second appraisal only for a material deficiency the appraiser will not fix, at its own cost. The appraisal is valid for 180 days from its effective date; an update extends it to one year from the original effective date.
Moving the appraisal to a new lender
Buyer's request
Ask the first lender in writing
The borrower asks the first lender to transfer the appraisal to the new lender.
≤ 5 business days
Transfer
Required once the first lender has been reimbursed for the appraisal.
New lender
Uses it as is
No readdressing; deficiencies mean a new appraisal, not a rewrite.
When a second appraisal is allowed
Never
To get a higher value or to remove or reduce required repairs.
Material deficiency
Missed health or safety defects, outdated or dissimilar comparables, or fraudulent statements.
Appraiser barred
The first appraiser is prohibited from working for the new lender.
Late transfer
The first lender does not send it in time and the delay would harm the borrower – lost rate lock, missed contract deadline, foreclosure, late fees.
How long the appraisal lasts
180 days
From the appraisal's effective date to disbursement.
Up to one year
With an appraisal update, counted from the original effective date.
What the TC can do
- If the buyer changes lenders, have them request the appraisal transfer in writing the same day.
- Note the transfer request date – five business days is the yardstick if the old lender is slow.
- Check the contract's financing and closing dates against the new lender's timeline right away.
Questions buyers ask
Can I switch lenders after the FHA appraisal is done?
Yes. At your request, the first lender must transfer the appraisal to the new lender within five business days, once it has been reimbursed for the appraisal (HUD Handbook 4000.1).
Can a new FHA appraisal be ordered because the value came in low?
No. FHA prohibits ordering another appraisal to increase the value or to eliminate or reduce required repairs.
How long is an FHA appraisal good for?
180 days from its effective date; an appraisal update can extend it to one year after the original effective date.
Related guides
Update the lender's contact on the deal in ClosingCode in one place – the deal's deadlines and steps stay as they were.
Start free trialSource: HUD Handbook 4000.1 (last revised 8/12/2026), II.A.1 Transferring Existing Appraisals, Ordering Second Appraisal and Appraisal Validity, hud.gov, read October 25, 2026.
General information about FHA-insured loans, not legal or financial advice. ClosingCode is software; it is not a lender or appraiser. This guide is not a substitute for the advice or services of an attorney.