A purchase appraisal and a refinance appraisal in Pomona use the same method: the same definition of market value, the same inspection and the same search for closed comparable sales. What changes on a refinance is that there is no sales contract. The appraiser has no contract to analyze and no concessions to report, and the lender sets the loan-to-value ratio from the appraised value alone, not from the lower of the price and the value.
This article explains those differences as Fannie Mae's Selling Guide describes them, what stays exactly the same, and how they play out on Pomona's housing.
What does a purchase appraisal have that a refinance does not?
A contract. For a purchase loan sold to Fannie Mae, Selling Guide section B4-1.3-02 (dated 06/04/2025) says: "The lender must provide the appraiser with a copy of the complete, ratified contract." The appraiser then reports the contract date and price, and "must indicate whether an analysis was or was not performed on the contract for sale," with an explanation if it was not.
The same section asks the appraiser to report any financial assistance, "such as loan charges, sales concessions or gift" funds paid on the borrower's behalf, and notes that this includes "both monetary and non-monetary items." On a purchase, then, the report reads the deal itself as well as the house.
On a refinance there is no deal to read. The contract requirements in that section apply to purchase transactions only.
What still applies on a refinance?
Almost everything else. Under the same Selling Guide section the appraiser must "research and identify whether the subject property is currently for sale" and report any offering in the 12 months before the effective date, the date the opinion of value applies to. If a Pomona owner listed the house, withdrew it within that window and is now refinancing, that listing appears in the report with its price, date and data source. It is reported as history, not as evidence of value.
The rest of the assignment is identical:
- The lender orders the report, directly or through an appraisal management company, a firm that places orders on the lender's behalf. The guide to who orders a mortgage appraisal explains why.
- The interior and exterior are inspected, and gross living area, the finished, above-grade living space, is measured.
- Condition and quality ratings, the report's standardized scores for upkeep and for construction quality, are assigned the same way.
- Comparables are closed sales of similar property. Active listings, an automated estimate such as a Zestimate and an agent's CMA are each not an appraisal and are not comparables.
- Reconciliation, the appraiser's weighing of the evidence into one opinion of value, follows the same reasoning.
For loans delivered to Fannie Mae and Freddie Mac, the redesigned Uniform Residential Appraisal Report is mandatory for new reports submitted on or after November 2, 2026, on purchases and refinances alike. The guide to the redesigned URAR covers what changes on the form.
How does the lender use the value differently?
This is the part that matters most to a borrower, and it is the lender's calculation, not the appraiser's. Fannie Mae's Selling Guide section B2-1.2-01 (dated 06/01/2022) defines the property value used for the loan-to-value ratio this way:
- For a purchase: "The property value is the lower of the sales price or the current appraised value."
- For a refinance: "The property value is the current appraised value."
So on a purchase the contract price sets a ceiling on the value the lender uses, whatever the appraisal shows. On a refinance the appraised value is the only figure in that slot. The guide notes that the calculations "may differ for certain mortgage loans," so confirm with the lender how your loan program treats it. Questions about the loan amount, cash out or pricing belong to the lender.
None of this changes what the appraiser does. The appraiser does not know or work toward a loan amount, and the opinion is not adjusted to fit a price or a refinance plan.
How do these differences play out in Pomona?
These are the kinds of assignments that come in, and the point where the purchase and refinance versions part ways.
- A house in Lincoln Park, Wilton Heights or Hacienda Park. On a purchase the contract may include seller credits for older systems, which the report lists as financial assistance. On a refinance there is none, but the comparable search is the same: other pre-1940 homes of similar era and style, with district status noted as a condition of the property.
- A duplex or fourplex around downtown, Holt Avenue or the Fairplex. Two to four units are reported as small residential income property, and the legal unit count is checked against permits and city records on a purchase or a refinance. On a refinance the owner usually holds the leases, so have them ready. Pomona's rent stabilization program is noted as a condition affecting income, not as legal advice.
- A postwar tract house. Garage conversions and back units are the recurring questions either way. On a purchase the seller supplies access and the permits may be hard to find; on a refinance the owner can pull them before the visit.
- A Phillips Ranch home in the southwest hills. Slope, view and HOA terms shape the comparable search. Give the lender the HOA contact for either transaction.
- East Pomona near the Montclair line. Pomona is in Los Angeles County and Montclair, across Mills Avenue, is in San Bernardino County. A west Montclair sale can look like an east Pomona one and still sit under a different assessor and school district. It is used only when it is genuinely better evidence, with the location difference explained, whether there is a contract or not.
The Pomona area page describes these pockets in more detail.
What happens if the value comes in under the price, or under what I hoped?
On a purchase, the lender uses the lower figure, and the buyer and seller decide what to do under their contract. On a refinance, the lender decides what loan the value supports. In both cases the route to question the report is a reconsideration of value, the lender's request that the appraiser reassess the report based on factual errors or comparable sales it missed. You ask the lender, and the lender decides whether to send it. What happens if the appraisal is low walks through the options.
Next step
The lending and refinance appraisals hub collects the series, and the pillar guide to what the lender's form asks covers each section of the report. Lenders, credit unions and brokers can order through residential appraisal for lending and refinance or call (909) 324-6122. Reports are typically delivered three to five business days from the inspection, and the fee is set by the scope of the assignment, quoted before work begins and does not depend on the value.
Sources
- Fannie Mae Selling Guide B4-1.3-02, Subject and Contract Sections of the Appraisal Report (06/04/2025): https://selling-guide.fanniemae.com/sel/b4-1.3-02/subject-and-contract-sections-appraisal-report (accessed November 6, 2026)
- Fannie Mae Selling Guide B2-1.2-01, Loan-to-Value (LTV) Ratios (06/01/2022): https://selling-guide.fanniemae.com/sel/b2-1.2-01/loan-value-ltv-ratios (accessed November 6, 2026)
- Fannie Mae Selling Guide B4-1.1-03, Appraiser Selection Criteria (06/04/2025): https://selling-guide.fanniemae.com/sel/b4-1.1-03/appraiser-selection-criteria (accessed November 6, 2026)
- Freddie Mac, UAD and Forms Redesign FAQs (UAD 3.6 mandatory for new reports submitted to UCDP on or after November 2, 2026): https://sf.freddiemac.com/faqs/uad-and-forms-redesign (accessed November 6, 2026)
- Fannie Mae Selling Guide B4-1.3-12, Appraisal Quality Matters (09/03/2025), reconsideration of value: https://selling-guide.fanniemae.com/sel/b4-1.3-12/appraisal-quality-matters (accessed November 6, 2026)
- California Bureau of Real Estate Appraisers, license lookup for Gordon Hall, BREA No. AR003877: https://www2.brea.ca.gov/breasearch/faces/party/view.xhtml?id=23601 (accessed November 6, 2026)
Gordon Hall, California Certified Residential Real Estate Appraiser, BREA No. AR003877 (lookup: https://www2.brea.ca.gov/breasearch/faces/party/view.xhtml?id=23601). Reports are prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). Nothing here is legal or tax advice; admissibility is always the court's decision.
Frequently asked questions
Is a refinance appraisal done differently from a purchase appraisal?
The method is the same: an inspection, measured gross living area, condition and quality ratings, closed comparable sales and a reconciled opinion of value. What a refinance lacks is a sales contract, so there is no contract analysis and no concessions to report.
Does the appraiser see the purchase contract?
On a purchase loan sold to Fannie Mae, yes. Selling Guide B4-1.3-02 says the lender must provide the appraiser with a copy of the complete, ratified contract, and the appraiser indicates whether an analysis of the contract was performed and reports any financial assistance or concessions.
How does the lender use the appraised value on a refinance?
For loans sold to Fannie Mae, Selling Guide B2-1.2-01 says the property value for the loan-to-value ratio on a refinance is the current appraised value. On a purchase it is the lower of the sales price or the current appraised value. Ask your lender how your loan program applies it.
Will a past listing of my Pomona house show up on a refinance appraisal?
It can. The appraiser must research whether the property is currently for sale or was offered in the 12 months before the effective date, and report each offering's price, date and data source. It is reported as history, not as evidence of value.
