Reading the actual guideline text below — never a general AI guess

What UAD 3.6 Condition Ratings C1–C6 Mean

Here's what the six condition ratings actually measure: we're looking at how well a dwelling has been maintained and what physical state it's in on the day of appraisal — not how it compares to other houses, just its absolute condition.

The six ratings, from best to worst:

C1 — The dwelling is newly built, finished within the past 12 months, never lived in, shows no wear at all, has an original foundation, and may include recycled materials like reconditioned barn wood as long as the overall structure exhibits no physical depreciation.

C2 — The dwelling looks brand new; it was either built or completely gutted-and-remodeled within the past 36 months, has little to no wear and tear even if someone has lived in it, and requires no repairs.

C3 — The dwelling is well-maintained with only minor wear; it may have some older components that were kept in great shape with minimal use, or some major systems (roof, mechanicals, flooring, kitchen, or bathrooms) have been updated recently, but not a full house renovation.

C4 — The dwelling shows moderate wear from normal living and weather exposure; some updating may exist, but most components are older and fully functional.

C5 — The dwelling shows significant wear from poor upkeep; items like roofing that's severely worn or missing floor coverings need repair or replacement soon, but major systems still work and the structure is sound enough for someone to live there.

C6 — The dwelling is in terrible condition with extreme neglect causing severe damage or missing major components; it's not safe or usable to occupy without immediate major repairs or replacement of critical parts.

Fannie Mae adds that properties rated C6 cannot be financed "as is" — the appraisal must require that deficiencies be fixed to bring the property down to at least C5 condition before closing.

Straight from UAD 3.6 / URAR (FNMA) Appendix 2 and Fannie Mae Selling Guide — nothing added.

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