Navigating the 2026 Appraisal Process: Do You Need Flood and Tax Certifications?

As we move further into 2026, the mortgage and appraisal landscape has become increasingly data-driven. For homeowners, buyers, and real estate professionals, one of the most common points of confusion during a “new” appraisal is the distinction between the information found within the appraisal report and the external certifications required to close a loan.

If you plan to apply for a DSCR loan this year, this may apply to you.

If you are wondering whether new appraisals require flood and tax certifications, the answer is a nuanced yes—but they serve very different purposes and are handled by different parties.

My client called me to protest this additional fee on her appraisal bill..which increased the total fee to $875! She wasn’t too happy, and I was caught off-guard, and after some research, I reassured her that yes, this was the new normal..

The Evolution of the Appraisal (UAD 3.6)

As of early 2026, Fannie Mae and Freddie Mac have fully transitioned to the UAD 3.6 (Uniform Appraisal Dataset) standard. This update requires appraisers to provide more granular data than ever before. However, even with this increased data, an appraisal is a valuation tool, not a legal guarantee of title or flood status.

Here is how flood and tax certifications fit into the modern workflow.

1. The Flood Requirement: More Than Just a Map

In 2026, identifying a property’s flood risk is no longer a “check-the-box” exercise. Because of FEMA’s Risk Rating 2.0, flood insurance premiums are now tied to specific property variables rather than just broad zones.

• The Appraiser’s Role: On the appraisal report, the appraiser is required to list the FEMA Flood Zone, the Map Panel Number, and the Map Date. They identify if the subject property sits within a Special Flood Hazard Area (SFHA).
• The Flood Certification (The “Flood Cert”): While the appraiser provides the data, the lender is legally required to pull a third-party Flood Certification. This is a guaranteed document that remains with the loan file to ensure the property is compliant with the National Flood Insurance Act.
• The 2026 Edge: If the appraisal or the Flood Cert confirms the home is in a high-risk zone (Zones A or V), lenders today almost universally require an Elevation Certificate to supplement the appraisal. This allows for accurate insurance quoting before the loan can be cleared to close.

2. The Tax Certification: Ensuring a Clear Lien

Lenders must ensure that no government entity has a superior lien against the property due to unpaid taxes.

• The Appraiser’s Role: The appraiser researches the Tax Parcel Number (APN) and reports the current annual tax amount. This helps the lender calculate the buyer’s debt-to-income ratio.
• The Tax Certification (The “Tax Cert”): This is a formal document, usually issued by a title company or a specialized tax service. It provides a certified history of tax payments and confirms that there are no delinquent balances or “invisible” assessments (such as Mello-Roos or local improvement bonds) that weren’t immediately obvious.
• New Construction Alert: For appraisals on new builds in 2026, the Tax Cert is vital. It verifies when the property will transition from being taxed as “unimproved land” to “improved property,” preventing a massive, unexpected escrow shortage for the homeowner a year later.

Summary: Who is Responsible?

The Bottom Line for 2026

While the appraiser does the heavy lifting of identifying the flood zone and tax parcel, the certifications are separate legal documents ordered by your lender or title company.

If you are a borrower, you generally do not need to “order” these certifications yourself—the lender handles this as part of their due diligence. However, being aware of them is crucial. In the current 2026 market, a discrepancy between an appraiser’s flood zone find and the official Flood Cert can delay a closing by weeks.

Pro-Tip: If you are selling a home in a coastal or high-precipitation area, having your Elevation Certificate and most recent tax bill ready for the appraiser on day one can significantly speed up the underwriting process.