How to Fill Out and Submit the Hybrid Appraisal Form (1004 Hybrid)

The Hybrid Appraisal Form 1004 is a Fannie Mae and Freddie Mac appraisal report on which a licensed appraiser develops an opinion of value without visiting the property. A trained third-party data collector goes to the home, gathers photographs, measurements, and condition notes, and delivers that information to the appraiser, who then completes the report using the collected data plus market research. Form 1004 Hybrid is used for single-family properties; Form 1073 Hybrid is the parallel report for individual condominium units.¹

When a Hybrid Appraisal Can Be Used

You cannot choose a hybrid appraisal on your own. The lender’s automated underwriting system decides whether it is available. For Fannie Mae loans, Desktop Underwriter (DU) evaluates the casefile and, when the property and borrower profile meet its thresholds, issues a message telling the lender a hybrid appraisal is an option. DU may offer several choices at once, and the lender picks from what appears. On the Freddie Mac side, Loan Product Advisor (LPA) does the same evaluation, and its Last Feedback Certificate must indicate the mortgage is eligible for a hybrid appraisal report before the lender can proceed.¹

Eligible properties include one-unit homes: single-family detached, attached, condominiums, and units in planned unit developments. Principal residences, second homes, and investment properties all qualify. Existing properties under construction or renovation are eligible, as are community land trusts and properties with resale price restrictions. The transaction can be a purchase, a limited cash-out refinance, or a cash-out refinance, and Texas Section 50(a)(6) equity loans are specifically listed as eligible.¹

Several situations are excluded. A hybrid appraisal cannot be used for:

Two- to four-unit properties
Co-op units
Manufactured homes, regardless of foundation type
Proposed construction (a home that does not yet exist)
Construction-to-permanent loans, both single-close and two-close
HomeStyle Renovation and HomeStyle Refresh loans
Manually underwritten loans
DU loan casefiles receiving an “Ineligible” recommendation

What the Data Collector Does

The data collection and the appraisal are separate assignments. The collector gathers raw information on-site; the appraiser analyzes it later. Before the appraiser starts work, the collected data must comply with the Uniform Property Dataset and be delivered to the Fannie Mae Property Data API for Fannie Mae loans.¹

Photographs

The data collection must include photos of the kitchen, all bathrooms, and the main living areas (living room, family room, dining room, and every bedroom). Below-grade spaces, both finished and unfinished, must be photographed. Physical deterioration or recent remodeling gets its own documenting photos. Exterior photos of the front, rear, and street scene are standard, along with shots of any external influences that could affect value, such as nearby commercial buildings, power lines, or heavy traffic.²

Floor Plan and Measurements

A computer-generated floor plan is mandatory. Hand-drawn sketches are not acceptable. The floor plan must show interior walls, stairways, and entry points, and all measurements must follow the ANSI Z765-2021 standard for above-grade and below-grade square footage. The ANSI standard applies to every hybrid appraisal without exception. Even where local market custom differs, the ANSI figure controls, and appraisers cannot opt out.³

The collector also records site and neighborhood information: lot size, zoning, view, flood zone status, and the character of surrounding properties. Data points need to be specific rather than vague.

Who Can Serve as the Data Collector

The person who visits the property can be a real estate agent, insurance inspector, home inspector, appraiser, or another trained professional. Every collector, regardless of profession, must pass an annual background check and complete training on measurement and photography requirements.⁴

Independence rules bar the following people from acting as the data collector on a given transaction:

The borrower or property owner
Anyone with a financial interest in the property or the loan
Anyone who would receive a fee from the sale
Any real estate agent or broker involved in that specific transaction
Employees or affiliates of the lender, unless internal controls ensure independence
Employees or affiliates of the appraiser or appraisal management company on the same transaction

⁵

A real estate agent can be a data collector on other homes; the rule only prohibits it on a property where the agent is also listing agent or buyer’s agent.

How the Appraiser Completes the Report

Once the collected data is uploaded, the lender shares it with the appraiser at engagement. The appraiser uses the collected data along with public tax records, Multiple Listing Service data, and prior sales histories to develop the value opinion. The effective date of a hybrid appraisal is the date the appraiser reaches their opinion of value, not the date of the property visit.¹

The report contains sections for site description, neighborhood characteristics, physical condition of improvements, and the sales comparison approach, all populated from the collected data and the appraiser’s market research.

Required Assignment Fields

The Additional Comments section requires specific entries identifying the appraisal as hybrid. The appraiser fills in:

Appraisal Assignment Type: “Hybrid”
Subject Property Data Collection Method: “Physical”
Data collection date in YYYY-MM-DD format
Type of professional who performed the collection, such as “RealEstateAgent,” “HomeInspector,” “InsInspector,” or “Appraiser”

USPAP Disclosures

Hybrid appraisals must comply with the Uniform Standards of Professional Appraisal Practice. The signed certification must state whether the appraiser personally inspected the property, and for a hybrid the answer is no. The report must identify any property data report the appraiser relied on, disclose the data sources used, and describe the verification process. If the data collector provided what USPAP considers significant appraisal assistance, that person’s name must appear in the certification.

Exhibits

The hybrid form requires the same exhibits as a traditional appraisal, plus the ANSI-conforming floor plan. When collected data conflicts with tax records or other external sources, the appraiser must resolve the discrepancy before finalizing the value. The lender remains responsible for verifying the accuracy of the property description and the condition and quality ratings the appraiser assigns.¹

Submitting the Finished Report

The completed hybrid appraisal is delivered electronically through the Uniform Collateral Data Portal (UCDP). Lenders must submit electronic appraisal data files that conform to all GSE requirements through UCDP before delivering the mortgage to Fannie Mae or Freddie Mac. The portal accepts the upload and returns any edit messages flagging potential issues. Once the report clears UCDP, the valuation step is complete and the file moves to underwriting.⁶

Your Rights as the Borrower

Getting a Copy of the Appraisal

Federal law requires the lender to give you a copy of the completed hybrid appraisal at no extra charge. Under Regulation B (12 CFR 1002.14), the lender must provide it either promptly after the appraisal is finished or at least three business days before closing, whichever comes first. You do not need to ask; delivery is automatic.⁷

You can waive the three-day review period, but the waiver has to be signed at least three business days before closing, not at the closing table. If the loan does not close, you still get the copy. The lender has 30 days after determining the transaction will not close to send it.⁷

Reconsideration of Value

If you believe the appraised value is too low or the report contains errors, you can request a reconsideration of value (ROV). Fannie Mae allows one borrower-initiated ROV per appraisal report. For minor errors, such as a wrong room count or an incorrect feature description, the appraiser must correct the report and add comments explaining the change, even when the correction does not affect the final value.⁸

For material issues, such as missing comparable sales that would support a higher value or factual errors that change the analysis, the lender must work with the appraiser to address every deficiency. The ROV process must comply with Appraiser Independence Requirements, so neither the lender nor the borrower can pressure the appraiser toward a specific number. If your request is missing information or does not meet the lender’s minimum requirements, the lender is supposed to help you gather what is needed before forwarding the request. You can also cancel an ROV request if you change your mind.⁸

1
Fannie Mae. Selling Guide – Hybrid Appraisals
2
Fannie Mae. Selling Guide – Appraisal Report Forms and Exhibits
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Fannie Mae. Standardizing Property Measuring Guidelines
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Fannie Mae. Property Data Collection 101
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Fannie Mae. Selling Guide – Value Acceptance + Property Data
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Fannie Mae. Uniform Collateral Data Portal
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eCFR. 12 CFR 1002.14 – Rules on Providing Appraisals and Other Valuations
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Fannie Mae. Reconsideration of Value (ROV)