What is a USDA appraisal and what does it require?

A USDA appraisal is the property valuation a lender orders for a home loan backed by USDA Rural Development. Because that loan is a federally related transaction, Title XI of FIRREA requires the appraisal to be written, performed in accordance with uniform standards, and completed by a state licensed or certified appraiser who follows USPAP. USDA Rural Development is one of the nine member agencies of the federal Appraisal Subcommittee, which oversees the appraisal system for such transactions.