How This Impacts Mobility
Employee transfers often involve the purchase and/or sale of a private residence. Transferees, as do most homebuyers, traditionally need a home mortgage in order to secure the purchase of a home and the buyers of their origin location home also will need a mortgage. With the increase in threshold, more residences not financed through the FHA, HUD, VA or guaranteed by Fannie Mae or Freddie Mac, will be eligible for a home evaluation as opposed to appraisal. However, even with the increased threshold, private mortgage lenders may still choose to require buyers to get an appraisal on a home below the $400,000 threshold. Because an appraisal is a more thorough assessment of the value of a home than an evaluation, it is more costly and thus increases the fees paid by buyers involved in these transactions.