$400,000 appraisal threshold

We have an LLC that owns a 1-4 property we will be doing a loan on. If the loan amount is over $400,000 we have to have an appraisal by a state certified or licensed appraiser, right?

Does loan purpose or individual borrower vs entity borrower matter? I didn't think so but I wanted to double check.

The final rule increases the threshold level at or below which appraisals are not required for residential real estate transactions from $250,000 to $400,000. The final rule defines a residential real estate transaction as a real estate-related financial transaction that is secured by a single 1-to-4 family residential property.

Purpose or borrower is not a consideration

Thanks, Randy. The LO thought since this was a business-purpose loan to an LLC that it would $500,000 before we would have to get an appraisal.

The easiest way to explain this is:

A single 1-4 family residential property = $400,000 threshold.
Anything else = $500,000 threshold.

As Randy said, the loan purpose doesn't matter as the definitions are different in the appraisal threshold rules than what they are in Regulation Z.