An FHA appraisal is valid for 180 days from the appraiser’s effective date. If the loan does not close within that window, the lender can order an appraisal update that extends validity to one full year from the original effective date. This rule comes from HUD’s Single Family Housing Policy Handbook 4000.1 and FHA Mortgagee Letter 2022-11.
The 180-Day Rule, Explained
When an FHA appraiser inspects a property and writes the appraisal report, they assign an effective date. That date starts the clock. From that point, you have 180 days to close the FHA loan.
Day one is the day after the effective date. So if the effective date is January 1, day one is January 2, and the appraisal is good through June 30.
This 180-day standard applies to both:
- FHA forward mortgages (regular purchase and refinance loans)
- Home Equity Conversion Mortgages (HECM) — FHA’s reverse mortgage program
For full FHA program details and rules, see FHA loan programs and requirements.
The Appraisal Update Extension to 1 Year
If your FHA loan does not close within 180 days, the lender does not have to start over. Instead, the lender can order an appraisal update — sometimes called a “Restricted Appraisal Update Report” — that extends the original report’s validity to one full year (365 days) from the original effective date.
The appraisal update is faster and cheaper than a new full appraisal. The same appraiser typically reviews recent comparable sales and confirms the property’s value still holds.
Important note: The old policy that allowed a 30-day extension no longer exists. FHA removed that option in 2022. Today, either the appraisal is valid (within 180 days), or it needs an update.
What Happens After 1 Year?
Once 365 days pass from the original effective date, the appraisal expires completely. A brand-new FHA appraisal must be ordered before the loan can close. Even with a valid appraisal update, you cannot extend the report beyond 1 year from the original effective date.
For buyers exploring various FHA financing paths, FHA purchase loan options for first-time buyers compares FHA against conventional, VA, and USDA loans.
The Appraisal Belongs to the Property, Not the Buyer
One important detail catches many buyers off guard: an FHA appraisal attaches to the property, not to the borrower. If your purchase deal falls through and a different FHA buyer comes along within the 180-day window, that second buyer may be able to use the same appraisal. This saves the new buyer the $400 to $700 appraisal fee.
This does not work across loan types. A conventional buyer cannot use an FHA appraisal. The property must remain financed under an FHA loan for the appraisal to transfer.
For homeowners considering an FHA refinance, FHA refinance program options covers the streamline and rate-and-term paths.
An FHA appraisal is good for 180 days from the effective date. An appraisal update extends the validity to 1 year — total. The 30-day extension that used to exist was eliminated in 2022. The appraisal attaches to the property, so a second FHA buyer in the same window may be able to reuse it.
Frequently Asked Questions on FHA Appraisal Policies
What is the “effective date” on an FHA appraisal?
The effective date is the date the FHA appraiser inspected the property and assigned a value to it. It is usually printed near the top of the appraisal report. The effective date is what starts the 180-day validity clock. If the effective date is different from the report date, the effective date is what FHA counts. Day one of the 180-day window is the day after the effective date.
How much does an FHA appraisal update cost compared to a new appraisal?
An FHA appraisal update typically costs $100 to $250, while a brand-new FHA appraisal costs $400 to $700 depending on home size and location. The update is faster too — usually 3 to 7 business days versus 7 to 14 days for a full new appraisal. For loans that miss the 180-day window by a short period, the update is almost always the better choice.
Can I use the same FHA appraisal for a different property?
No. An FHA appraisal is tied to one specific property at one specific address. If you change properties, a new appraisal must be ordered for the new home. However, the appraisal stays with the property even if the buyer changes. If your purchase falls through and another FHA buyer comes along within the 180-day window, that buyer can typically use the same appraisal report.
Reviewed: by John Tappan NMLS# 394171 | June 2026
References
Legal Clarity. (2026, April). FHA appraisal: Requirements, validity, and inspection standards.
U.S. Department of Housing and Urban Development. (2022, July 12). FHA Implements Revised Appraisal Validity Period Guidance (FHA INFO 2022-71).
Disclosure: This article reflects FHA appraisal validity rules from HUD’s Single Family Housing Policy Handbook 4000.1 and FHA Mortgagee Letter 2022-11, with the November 26, 2025 handbook update reaffirming these rules. Appraisal rules and lender practices can change. The figures above are general references, not a quote or commitment to lend. BD Nationwide Mortgage connects borrowers with lenders and does not directly originate loans.