Fannie Mae Rural High-Needs Value Acceptance Retired in 2026: What Changes for DU

The Fannie Mae Selling Guide (updated June 3, 2026 via SEL-2026-06) retires the rural high-needs value acceptance program because it overlapped with Value Acceptance + Property Data. For Desktop Underwriter (DU) loan casefiles created on or after June 27, 2026, DU will no longer offer rural high-needs value acceptance. Those files may still be eligible for Value Acceptance + Property Data when DU supports it.

Fannie Mae states the policy change is effective immediately and that references to rural high-needs value acceptance were removed from the Fannie Mae Selling Guide, including B4-1.4-10, Value Acceptance and A2-2-06, Representations and Warranties on Property Value. The UAD 3.6 Policy Supplement was updated for the same change.

What was rural high-needs value acceptance?

Before retirement, rural high-needs value acceptance was a DU-driven appraisal waiver path for selected rural high-needs areas. Eligibility was narrower than standard value acceptance: purchase transactions, one-unit principal residences (excluding manufactured homes), borrowers at or below 100% of area median income, Approve/Eligible recommendations, and LTV up to 97% (CLTV up to 105% with Community Seconds). Cash-out, limited cash-out refinances, second homes, and investment properties were ineligible.

That program is gone for new casefiles after the June 27, 2026 cutoff. Pipelines still in flight should confirm casefile creation dates against the announcement.

What appraisal paths remain after June 27, 2026?

Brokers should map each file to one of these paths:

1. Standard value acceptance under B4-1.4-10 when DU offers it and the transaction meets guide eligibility (property type, occupancy, loan purpose, and recommendation rules still apply).
2. Value Acceptance + Property Data under B4-1.4-11 when DU offers that path and the lender can collect the required property data.
3. Full appraisal on the appropriate report form when neither waiver path is available.

The retirement does not eliminate value acceptance broadly. It removes the rural high-needs variant only.

What should brokers do before the June 27, 2026 casefile cutoff?

Files that still depend on rural high-needs value acceptance need a casefile created before June 27, 2026 if that specific DU offer is required. After that date, plan on Value Acceptance + Property Data or a traditional appraisal.

Operational checklist:

• Confirm DU casefile creation date relative to June 27, 2026.
• Re-run DU if property data or loan structure changed after an earlier rural high-needs offer.
• Document which value acceptance path (if any) DU returned and retain property data or appraisal files accordingly.
• Review B4-1.4-10 and B4-1.4-11 for current eligibility; the June 3, 2026 guide update applies.

Where to verify

Primary source: Announcement SEL-2026-06: Selling Guide Updates and the linked PDF. Current value acceptance rules: B4-1.4-10, Value Acceptance (updated June 3, 2026).

For more on agency mortgage guidelines, see the Agency Guidelines hub.

This article is for informational purposes only and is not professional advice. Always verify against current guidelines before making decisions.