UAD C1–C6 Condition Ratings: What They Mean for Buyers, Sellers, and Lenders
Fannie Mae and Freddie Mac require every appraisal to carry a UAD condition rating from C1 (new) to C6 (significant deferred maintenance). Here is what each rating means and how it affects loan eligibility.
Published 2024-12-08 · Updated 2026-04-21 · 5 min read
What is the UAD condition rating?
The UAD is a Fannie Mae / Freddie Mac data standard published in 2011 that requires every residential appraisal submitted through the Uniform Collateral Data Portal (UCDP) to carry standardized property characteristics — including a single-letter condition rating from C1 to C6.
What does each rating mean?
| Rating | Definition | Loan impact |
|---|---|---|
| C1 | New, never occupied; no physical depreciation | Eligible, no condition |
| C2 | No deferred maintenance; recent improvements or like-new | Eligible, no condition |
| C3 | Well-maintained; minor deferred maintenance, no immediate repairs required | Eligible, no condition |
| C4 | Adequate maintenance; some minor repairs needed; no significant structural issues | Eligible, no condition |
| C5 | Obvious deferred maintenance; some short-lived components at or near end of life; may require minor repairs | Usually requires completion of called-out repairs prior to funding |
| C6 | Substantial damage or deferred maintenance impacting safety, soundness, or structural integrity | Ineligible until repaired and re-rated |
What pushes a home from C3 to C4 or C5?
The most common triggers in ProActive's San Antonio + Austin inspection data:
- Roof at or past expected life with visible granule loss
- HVAC system 15+ years with visible corrosion or refrigerant leak indicators
- Water heater past expected life (10 yrs) or signs of leak at base
- Visible foundation cracks > ⅛" or differential settlement
- Active roof leak (drops to C5/C6 quickly)
- Knob-and-tube or aluminum branch wiring (Texas: usually pre-1965 construction)
How does this affect a sale?
A C5 rating typically requires repair completion before the lender funds — meaning the deal stalls until either the seller or buyer pays for the work. A C6 rating usually breaks the deal unless one party can finance the repair separately. A C3 rating closes on schedule with no condition.
How does the Home Intelligence Score map to UAD?
The Home Intelligence Score is calibrated so that a score of 85+ typically aligns with C2/C3, 70–84 with C3/C4, 55–69 with C4/C5, and below 55 with C5/C6. The mapping is approximate — UAD is a categorical judgment by a licensed appraiser; the Score is a continuous index — but they correlate strongly enough to use as a pre-sale planning tool.
Frequently asked questions
Can I challenge a UAD rating?
Yes — the appraisal is subject to a reconsideration of value (ROV) request through the lender. ROV must include new evidence (recent repair invoices, photographs, comparable appraisals).
Does FHA use the same C1–C6 scale?
FHA appraisals also use UAD; in addition, FHA has its own Minimum Property Standards (MPS) that can flag specific items independently of the C-rating.
Is the rating public record?
No. The appraisal is delivered to the lender and (per Reg B) to the borrower. It is not recorded with the deed.