What is the required percentage increase in home value that necessitates a second appraisal within six months?

The correct answer is based on regulatory guidelines that stipulate a specific threshold for property value increases requiring a second appraisal to ensure accuracy in property valuation. A 10% increase in home value within a six-month period is significant enough to warrant a reevaluation of the property's worth. This requirement is in place to protect lenders and borrowers by providing an accurate assessment of the current market value, especially in fast-moving markets where property values can fluctuate rapidly. Ensuring that the valuation reflects the current market conditions is crucial for underwriting decisions and mortgage origination processes. Thus, when the increase meets or exceeds 10%, it raises enough concerns to justify the need for a second appraisal.