Fannie Mae Form 2055 is the Exterior-Only Inspection Residential Appraisal Report, a six-page form a licensed appraiser completes to estimate a property’s market value without going inside the home.1Fannie Mae. Exterior-Only Inspection Residential Appraisal Report The appraiser works from a street-level look at the property, public records, and other third-party data. Lenders order it on lower-risk mortgage transactions where skipping the interior walk-through saves time without meaningfully changing the valuation risk.
When Form 2055 Is the Right Form
Form 2055 is designed for one-unit properties, including units in planned unit developments. It is not designed for manufactured homes or units in condominium or cooperative projects.1Fannie Mae. Exterior-Only Inspection Residential Appraisal Report Two-to-four-unit properties and manufactured homes require different forms even when an exterior-only scope of work is acceptable.2Fannie Mae. Lender Letter LL-2020-04
The transaction type and loan-to-value ratio also decide eligibility. Under Fannie Mae’s expanded guidelines, exterior-only appraisals have been accepted for purchase transactions up to 97 percent LTV on principal residences and up to 85 percent on second homes and investment properties. For limited cash-out refinances, the loan being refinanced must already be owned by Fannie Mae. Cash-out refinances, second-home purchases above 85 percent LTV, and new construction loans are not eligible.2Fannie Mae. Lender Letter LL-2020-04
Fannie Mae’s current Selling Guide also lists newer options that may fit the same transactions, including the Desktop form (Form 1004 Desktop) and the Hybrid form (Form 1004 Hybrid).3Fannie Mae. Appraisal Report Forms and Exhibits Check the current Selling Guide before ordering a Form 2055 to confirm it is still the appropriate form for the transaction.
Where to Get a Blank Form
A blank PDF of Form 2055 is available on Fannie Mae’s forms page at singlefamily.fanniemae.com.4Fannie Mae. Selling and Servicing Guide Forms In practice, most appraisers work inside appraisal software that auto-populates the layout and generates the delivery file. The content and structure of the report are identical either way.
Minimum Scope of Work
The form itself sets the floor for what the appraiser has to do. At a minimum, the appraiser must:
- Inspect the subject property’s exterior from at least the street.
- Inspect the neighborhood for market conditions, land use patterns, and any adverse factors.
- Inspect each comparable sale from at least the street.
- Research, verify, and analyze data from reliable public or private sources.
- Report the analysis, opinions, and conclusions within the form.
Because the appraiser never enters the home, interior characteristics like room count, square footage, and condition come from external data: MLS listings, tax and assessment records, prior inspections, and information provided by the owner.1Fannie Mae. Exterior-Only Inspection Residential Appraisal Report The appraiser must identify those sources on the form. This is where an exterior-only report’s credibility lives or dies. If the public records are wrong about square footage or bedroom count, the value conclusion will be off, and there is no interior visit to catch the error.
How to Complete Each Section
Form 2055 is organized into distinct sections that build toward the final opinion of value at the end of the report.1Fannie Mae. Exterior-Only Inspection Residential Appraisal Report
Subject
The top of the form captures identifying information: property address, borrower name, owner of public record, county, legal description, assessor’s parcel number, tax year and amount, and neighborhood name. Indicate occupancy status (owner-occupied, tenant, or vacant), any HOA dues, and the property rights being appraised (fee simple or leasehold). For a purchase, enter the contract price, contract date, and any seller concessions or financing assistance. For a refinance, note current ownership and any sale history within the past 12 months.
Neighborhood
Characterize the surrounding area. Indicate whether property values are increasing, stable, or declining, and whether demand and supply are in shortage, balance, or oversupply. Estimate typical marketing time (under three months, three to six months, or over six months). Report the approximate breakdown of present land use by percentage: one-unit, two-to-four-unit, multi-family, commercial, and other. Draw neighborhood boundaries and describe the market conditions that support the conclusions.
External factors that affect value, such as proximity to industrial sites, heavy traffic corridors, flood zones, or incompatible land uses, get documented here. A neighborhood trending downward or showing unusual vacancy rates needs explanation, because lenders will scrutinize any negative market signals.
Site
Record lot dimensions, total area, shape, and view. Enter the zoning classification, describe what it permits, and indicate whether the current use legally conforms. Note whether the property falls within a FEMA Special Flood Hazard Area, including the flood zone designation, map number, and map date. Document the available utilities and any adverse site conditions visible from the exterior, such as easements or encroachments.
Improvements
Even without going inside, report the property’s physical characteristics. List the number of units, stories, design style, year built, and effective age. Describe the exterior walls, roof surface, gutters, and window type, all observable from the street. For interior details like room count, bedroom count, bathroom count, and gross living area, report what the data sources show and identify those sources on the form.
Document the condition of the property based on those data sources plus exterior observation. Note any physical deficiencies or adverse conditions affecting livability or structural integrity that are visible or known. Deferred maintenance visible from the street, such as peeling paint, a sagging roofline, or a cracked foundation, goes here with an assessment of how it affects value.
Sales Comparison Approach
This is the core valuation section. Identify at least three recently sold comparable properties with characteristics similar to the subject. For each, enter the address, proximity to the subject, sale price, price per square foot, and data source. Then work through the adjustment grid: sale or financing concessions, date of sale, location, site, view, design and appeal, quality of construction, age, condition, room count, gross living area, basement, functional utility, heating and cooling, garage or carport, and porch or deck.
Fannie Mae does not impose specific caps on net or gross adjustment percentages. The number or dollar amount of adjustments alone does not make a comparable unacceptable, but every adjustment must be market-based and supported with evidence. The appraiser must provide fact-based comments explaining the data sources and methods behind the adjustments, particularly between the financing concessions and condition line items.5Fannie Mae. Adjustments to Comparable Sales A bare statement that “an adjustment was made,” without explaining why, is not acceptable.
Reconciliation
After completing the sales comparison approach, reconcile the indicated values and state the final opinion of market value. Indicate whether the appraisal is “as is,” subject to completion of repairs, or subject to other conditions. Sign and date the report, and include the license or certification number and state.
Photograph Requirements
Every Form 2055 report must include clear, descriptive color exterior photographs: the front, back, and a street scene of the subject property, plus the front of each comparable sale used in the analysis.3Fannie Mae. Appraisal Report Forms and Exhibits Each property in the photos must be clearly identified. The images prove the appraiser visited the locations and document the observable condition of the structures at the time of the appraisal. If the rear of the subject is not visible from any accessible vantage point, note that limitation in the report.
Submitting the Completed Report
Form 2055 is not delivered through the Uniform Collateral Data Portal. The UCDP accepts Forms 1004, 1004 Desktop, 1004 Hybrid, 1004C, 1025, 1073, 1073 Hybrid, and 2090. Forms not on that list cannot be delivered through the portal. Instead, the lender must maintain the Form 2055 report and all attachments in the loan file as part of the underwriting documents.6Fannie Mae. Uniform Appraisal Dataset (UAD) and the Uniform Collateral Data Portal (UCDP)
The appraiser delivers the completed report to the lender (or the appraisal management company that ordered it) as a PDF, typically through the appraisal software’s delivery system, and applies a digital signature before sending to verify identity and confirm the report has not been altered.
What the Lender Checks
Once the lender receives the completed report, a compliance review runs before it goes into the loan file. The lender is responsible for confirming that the property meets Fannie Mae’s eligibility criteria, that the appraiser has provided an accurate and reliable opinion of value reflecting market conditions, and that the appraisal conforms with Selling Guide requirements.7Fannie Mae. Review of the Appraisal Report For purchase transactions, the lender also analyzes the current sales contract and comparable sales data.
Inconsistencies get the report kicked back. Common ones on exterior-only assignments include reported square footage from MLS data conflicting with county assessor records, or comparable sales that don’t adequately support the value conclusion. Because the report leans entirely on third-party data for interior characteristics, data conflicts are one of the most frequent triggers for a revision request or an order for a more comprehensive appraisal. Cross-checking sources against each other before submitting saves a revision cycle.
Limits on the Appraiser’s Responsibility and on Changes to the Form
The form’s built-in assumptions and limiting conditions define what the appraiser is and is not responsible for. The appraiser assumes no hidden defects or adverse conditions exist unless otherwise stated in the report. The appraiser is not responsible for legal matters affecting the property or its title beyond what comes up during normal research. And the appraiser has no obligation to testify in court about the appraisal unless separate arrangements have been made beforehand.1Fannie Mae. Exterior-Only Inspection Residential Appraisal Report
The form’s intended use, intended user, definition of market value, and assumptions and limiting conditions cannot be modified. Additional certifications, such as those required by state law or related to continuing education, are permitted as long as they don’t materially alter the report. Deleting or changing the existing certifications is not allowed.1Fannie Mae. Exterior-Only Inspection Residential Appraisal Report