Why might I need a second appraisal when buying a flipped home?
Short answer
A second appraisal can be required when you buy a recently resold home with a higher-priced mortgage loan and the price jump meets CFPB thresholds. The lender must pay for that extra interior appraisal and cannot charge you for it. Not every flip is covered.
Full explanation
The CFPB describes a flip for this rule as a home the seller bought less than six months ago and is selling at a marked-up price: 10 percent more if the seller bought it within the past 90 days, or 20 percent more if the prior purchase was 91 to 180 days ago. If that fact pattern applies and you are getting a higher-priced mortgage loan covered by the rule, a second appraisal is required.
That second appraisal must include an interior inspection. The lender pays for it and cannot pass the cost to you.
The requirement is not universal. Rural-area flips can be exempt because fewer appraisers may be available. Homes acquired from a government agency are also exempt. This is not a rule for every purchase.
Sources reviewed
I was told I'm buying a home that was flipped and that I have to get a second appraisal. How does that work?
Last reviewed
September 10, 2026