Form 2055 Exterior-Only Appraisal Report: Inspection and Exhibits

Fannie Mae Form 2055, the Exterior-Only Inspection Residential Appraisal Report, is a six-page form used to value a one-unit residential property without entering the home; completing it correctly means combining a street-level inspection with verified public and MLS data, measuring under ANSI where possible, stating an extraordinary assumption about the unseen interior, attaching the required exhibits, and delivering the file through the lender in the Uniform Appraisal Dataset format. The scope is narrower than a full interior appraisal, but the appraiser’s obligation to produce a credible, supportable value is the same.

When Lenders Order Form 2055

Form 2055 is not something an appraiser selects. Fannie Mae’s Desktop Underwriter evaluates each loan casefile and specifies the appraisal type based on the transaction’s risk profile. When DU calls for an exterior-only appraisal, Form 2055 is the form, and it is limited to one-unit properties, including detached single-family homes and units in Planned Unit Developments.¹

Two- to four-unit properties, cooperative units, manufactured homes, new construction, and properties valued at $1,000,000 or more fall outside the value acceptance framework that often precedes a 2055 assignment, so those transactions typically route to a full interior appraisal on Form 1004 instead.² The lender can also require a full interior appraisal regardless of what DU recommends. In practice, Form 2055 shows up most often on limited cash-out refinances of conventional single-family homes where the borrower has substantial equity.

Building the Property Profile Without Going Inside

Because the interior is off-limits, the appraiser has to construct an accurate physical description from outside sources. The form requires that the appraiser be able to obtain adequate information about the property’s physical characteristics, including condition, room count, and gross living area, from the exterior inspection and from reliable public or private sources.³

Start with county tax assessor records for parcel number, recorded square footage, year built, room count, and prior sale prices. Cross-reference against MLS history, which often includes interior photographs and detailed descriptions from prior listings. When the records disagree — a tax card showing three bedrooms while the last active listing advertised four — reconcile the discrepancy before finalizing. The appraiser’s certification requires that all information taken from other parties came from sources the appraiser believes to be reliable.³ Prior appraisal reports and builder floor plans, where available, help fill remaining gaps.

Measuring GLA Under ANSI

Fannie Mae requires appraisers to follow the ANSI Z765-2021 standard for calculating gross living area. On an exterior-only assignment where interior spaces cannot be physically measured, the ANSI standard requires a declaration explaining the limitation. If the appraiser cannot comply with the standard at all, the code “GXX001-” must be entered in the Additional Features field, along with an explanation of why compliance was not possible.⁴

The practical workflow is to derive the interior layout from tax records or builder plans, then measure exterior dimensions on site to confirm the footprint. All sketches and floor plans must be computer-generated, show legible exterior dimensions to the nearest tenth of a foot, and include the calculations used to arrive at the final square footage. Round the finished GLA figure to the nearest whole square foot. Finished space counts toward GLA only if ceiling height reaches at least seven feet, and in rooms with sloping ceilings, at least half the finished area must meet that seven-foot threshold.⁴ Note the measurement declaration when interior access was not possible, when measurements come from building plans, or when direct measurement of the dwelling was otherwise impractical.⁵

Performing the Exterior Inspection

The site visit is narrow by design. The appraiser’s certification on the form sets the minimum: “I performed a visual inspection of the exterior areas of the subject property from at least the street.”³ The phrase “from at least the street” is the floor. Observe more when it is safely visible from a public right-of-way, but do not enter the property.

From the street, the task is to identify physical deficiencies that could affect the livability, soundness, or structural integrity of the property.³ Note visible roof damage, deteriorating siding, foundation cracks, deferred maintenance, and signs of settling. Document the landscaping, driveway, and any visible outbuildings. Evaluate the neighborhood context: proximity to commercial properties, traffic patterns, and external factors that could influence value. The result should be a coherent picture of curb appeal and physical condition that holds up under lender review.

Completing the Sales Comparison Approach

Form 2055 is built around the sales comparison approach. The appraiser’s certification confirms that the opinion of market value is based on this approach, and that the cost and income approaches were considered but not developed unless the report says otherwise.³

Choose comparables that are locationally, physically, and functionally similar to the subject. The certification prohibits using a comparable sale that combines a land purchase with the contract price of a home built or to be built on that land. Research and report any current agreement for sale on the subject property, any offering for sale of the subject in the twelve months before the effective date, and the subject’s prior sales going back at least three years. For each comparable, report its prior sales for at least one year before the date of that comparable’s sale.³

Adjustments should reflect actual market reactions to differences between the subject and each comparable, not mechanical dollar-per-square-foot formulas. Verify information from parties with a financial interest in a sale through a disinterested source. On an exterior-only report, the reliability of any interior-condition adjustment depends entirely on the quality of your third-party data, so document how you reconciled sources.

Stating the Extraordinary Assumption

Every Form 2055 has a built-in tension: the appraiser is rendering an opinion on a property whose interior remains unseen. USPAP addresses this through the Scope of Work Rule. When assignment conditions restrict inspection, the appraiser must either modify the conditions to expand the scope or use an extraordinary assumption about the missing information, provided credible results can still be developed.

The standard practice on Form 2055 is to state an extraordinary assumption that the interior condition is consistent with what the exterior condition and available data suggest. That assumption is load-bearing. If the interior turns out to be substantially different, the valuation conclusion may no longer hold. USPAP requires the appraiser to disclose the scope of work in the report, including what was performed and, where appropriate, what was not; the appraiser has flexibility in how and where that disclosure appears.

The form’s own language reinforces the point. It states that the appraiser has no knowledge of hidden or unapparent physical deficiencies and has assumed no such conditions exist.³ That is a disclosure, not a liability shield. If something visible from the exterior or in the data suggests a problem, the assumption does not excuse ignoring it.

Required Exhibits

The Fannie Mae Selling Guide specifies three exhibits that must accompany the report:

A street map showing the location of the subject property and each comparable sale used in the report.¹
Clear, descriptive color exterior photographs showing the front and a street scene of the subject property and the front of each comparable, with all properties identified.¹
A computer-generated footprint sketch with legible exterior dimensions and the calculations used to derive square footage, typically supplemented by tax records or builder plans on an exterior-only job.⁴

Interior photographs are not required for Form 2055. That is the main documentation difference from a Form 1004 assignment. The Selling Guide’s general exhibit table lists interior photo requirements for kitchen, bathrooms, living areas, and below-grade spaces, but those apply to interior-inspection forms.

Submitting the Report

The finished report is converted to an electronic file conforming to the Uniform Appraisal Dataset standards for delivery to Fannie Mae through the lender. Lenders whose systems support UAD 3.6, the redesigned dataset built on MISMO v3.6, are encouraged to begin integrating reports in that format. UAD 3.6 becomes mandatory on November 2, 2026, after which all appraisal reports on loans sold to Fannie Mae or Freddie Mac must use the new format.⁶

Most appraisers deliver the file through an appraisal management company portal or directly to the lender via secure upload. The lender’s quality control team checks that required fields are populated, exhibits are attached, and the property description matches the photographs and data. Inconsistencies trigger revision requests: a GLA figure that does not match the sketch calculations, missing comparable photos, or an unexplained extraordinary assumption. Lenders scrutinize exterior-only reports more closely because the appraiser had less opportunity to resolve ambiguities on site.

What the Signature Commits You To

The certification page is not boilerplate. By signing Form 2055, the appraiser affirms:

Competency in appraising the property type in the relevant market area.
Access to and awareness of the necessary public and private data sources, including MLS data, tax records, and public land records.
Compliance with the Uniform Standards of Professional Appraisal Practice in effect at the time the report was prepared.
Independent judgment, with compensation not contingent on a predetermined value or a direction that favors the client.

These certifications apply regardless of whether the inspection was interior or exterior-only.³ If the available data is insufficient to develop a reliable opinion of value, if records conflict with no way to reconcile them, or if the property is so unusual that exterior observation and public records cannot capture its condition, the right response is to withdraw from the assignment or request an expanded scope. Boilerplate language does not paper over real data gaps.

How Form 2055 Differs From Form 1004

Both forms use the sales comparison approach and follow the same Selling Guide framework. Form 1004, the Uniform Residential Appraisal Report, requires a full interior and exterior on-site inspection: the appraiser walks the property, photographs every major room, measures interior spaces directly, and reports on conditions invisible from outside, including plumbing, electrical systems, flooring, water damage, and kitchen and bathroom quality.¹

Form 2055 eliminates that interior access, so the appraiser’s confidence in the valuation rests more heavily on the quality of secondary data. A 1004 appraiser who walks into a gutted kitchen adjusts accordingly; a 2055 appraiser working from a five-year-old MLS listing may never know about it. That uncertainty is why the extraordinary assumption exists, and why lenders reserve exterior-only reports for transactions where the collateral risk is already low.

1
Fannie Mae. Appraisal Report Forms and Exhibits
2
Fannie Mae. Value Acceptance
3
Freddie Mac. Fannie Mae Form 2055 – Exterior-Only Inspection Residential Appraisal Report
4
Fannie Mae. Standardized Property Measuring Guidelines
5
Fannie Mae. Standardizing Property Measuring Guidelines
6
Fannie Mae. Uniform Appraisal Dataset