Appraisal Form - FHLMC 72 and FNMA 1025 Small Residential Income Property Appraisal Report. This is a full appraisal report form used for two to four family building appraisals. Small Residential Income Property Appraisal Report (Form 1025) Use of Form 1025: The lender uses this form to obtain the appraiser's analysis and estimate of value for either a conventional or a VA mortgage that is secured by a two- to four-family property. This form must be printed on legal size paper, using portrait format. When printing this form, you must use the "shrink to fit" option in the Adobe Acrobat print dialogue box. Instructions: This form is completed in its entirety by the appraiser. The lender should retain the original of the completed form and the appraiser should retain the copy. The Uniform Standards of Professional Appraisal Practice requires appraisers to identify their appraisal reports as a self-contained report, a summary report, or a restricted report by stating the applicable category at or near the beginning of the appraisal report form. The Appraisal Standards Board has expressed the opinion that the Uniform Residential Appraisal Report (Form 1004) is consistent with a summary appraisal report. Because Form 1025 is structured similarly to Form 1004 and requires an appraiser to provide essentially the same information as it relates to two-to four -family properties, an appraiser should also consider Form 1025 to be a summary appraisal report and should identify all appraisals reported on this form accordingly. The appraiser should provide his or her description and analysis of the neighborhood, site, and improvements. The valuation should include both rental and sales comparables; however, the same properties do not have to be used as both a rental and a sales comparable. In addition, the appraiser must attach the standard required exhibits listed in the Selling Guide--including the Statement of Limiting Conditions and Appraiser's Certification (Form 1004B)--to support each appraisal report. Units of Comparison: If the comparable properties are not very similar to the subject property, the appraiser must reconcile the indicators of value--the value per unit, the value per room, the value per square foot of gross building area, and the value per the gross rent multiplier--to develop a valid unit comparison that can be used in the valuation process. The appraiser should indicate in his or her market data analysis (or in an addendum to the appraisal report form) the adjustments that were made, explain the reasons for each adjustment, and note which indicators were given the most weight. Rent Forecasts: The appraiser must comment on how well the rent comparables compare to the subject property. He or she should also note and explain any adjustments that were made to arrive at the gross monthly forecasted rent (unfurnished) for the subject property. When estimating stabilized or forecasted rents, the appraiser must base his or her estimate on the level of rents currently obtainable on the effective date of the appraisal, and must not use a projection of future rent values. | 
