A buyer needs an appraisal for all financing types EXCEPT which of the following?

A buyer does not need an appraisal for a seller carry financing arrangement. When a seller carries the financing, they essentially act as the lender, allowing the buyer to make payments directly to them instead of going through a traditional lender or financial institution. This type of arrangement is often based on the terms agreed upon between the buyer and seller and may not require the extensive verification processes, such as an appraisal, that are common in other financing methods.

In contrast, financing types such as FHA (Federal Housing Administration), VA (Veterans Affairs), and loans sold to FNMA (Fannie Mae) typically do require an appraisal. This is because these types of loans are backed by government entities or sold to secondary markets that impose strict guidelines to ensure the property value meets certain standards for the security of the loan. Appraisals provide an independent assessment of the property’s value, which is critical in these situations to mitigate risk for lenders and ensure that the properties meet established criteria.