Back to News

Fed Helps Homebuyers with Rule Change

Published on

September 30, 2019

An updated rule from the Federal Reserve will make buying certain homes easier – or at least less cumbersome.

The Fed announced last week it has adopted a new threshold for residential real estate transactions that require an appraisal. The new threshold is $400,000, up from $250,000.

The threshold had not been updated since 1994, though real estate home values have increased with price appreciation and inflation through the last 25 years. That has left many more residential home sales requiring an appraisal than would have in 1994.

“(T)he change will provide burden relief without posing a threat to the safety and soundness of financial institutions,” the Fed wrote in a news release.

You can read the entire final rule here.

Homes that are exempt from an appraisal still require the lender to obtain an evaluation for an estimate of the home’s market value. This type of evaluation is less cumbersome and less expensive than an appraisal.

The move has the backing of the Consumer Financial Protection Bureau, which said that the new threshold provides “reasonable protection” for homebuyers purchasing one-to-four unit, single-family homes.

If you have any questions about this new threshold, please contact me at any time. 


Related News

View More News
News Alert
May 16, 2025

Pennsylvania House Bill 1960 Proposes Referendum Requirement for Large Warehouse Projects

This legislative session, lawmakers have introduced a new effort that could further complicate and delay the approval process...

Learn More
Press Release
May 12, 2025

Barley Snyder Attorneys Rebecca Shanaman and Katelyn Rohrbaugh selected as Central Penn Business Journal’s Women of Influence Award Winners

For Immediate Release York, Pa. – Barley Snyder is proud to announce that attorney Rebecca M. Shanaman has been named ...

Learn More
Press Release
April 22, 2025

Barley Snyder Attorney Martin Siegel Reappointed to PA Department of Environmental Protection’s Sewage Advisory Committee for Third Consecutive Term

For Immediate Release York, Pa. – Barley Snyder is pleased to announce that Martin R. Siegel has been reappointed to t...

Learn More

Other Upcoming Events

View All Upcoming Events
Jun
03
7:30 am
-
12:00 pm
event
Location

Wake Up With Barley – A Morning on Real Estate 2025

Learn More

Get in Touch

Our attorneys, paralegals and staff look forward to hearing from you. Please reach out to let us know how we can help.

Get In Touch
RECOGNIZED IN
Super Lawyers
Best Law Firms US News
Best Lawyers