FNMA 1025 - Small Residential Income Property Appraisal

The Form 1025, "Small Residential Income Property Appraisal Report" is designed for two to four family income properties. (1025) It's extensively used by lenders and other investors for purchases and refinancing purposes. It is also used for formal tax appeals, condemnation, contested matrimonial or any situation involving a two to four family income property in which court testimony is contemplated.

The appraiser's description of the physical characteristics of the property and comparables will be obtained from reliable data sources including a thorough interior and exterior inspection. The inspections take about half an hour to one hour, depending on the size of the dwelling.

A "Small Residential Income Property Appraisal Report" typically consists of a letter of transmittal; market area analysis; description of the site; description of the improvements; rental income analysis; cost approach; income approach; direct sales comparison approach with comparable sales; reconciliation; operating income statement, definition of market value; certification; contingent & limiting conditions; FIRREA addendum; interior and exterior photos of the subject property; exterior photos of all comparable sales used; comparable sales location map; plat map; sketch of subject property showing room layout; flood map if applicable; qualifications of the appraiser and reviewer.

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