Do conventional loans require an appraisal?
Usually yes. Most conventional purchases and refinances require a full appraisal by a licensed appraiser. Appraisal waivers (also called PIWs) are sometimes offered by Fannie's DU or Freddie's LP on lower-LTV files with strong AVM data, but waivers aren't guaranteed.
What this actually means.
Standard conventional purchase: full appraisal ordered through the appraisal management company, $400-700 cost, 7-14 day turn. Appraisal waiver: automated underwriting issues a 'value accept' on certain low-LTV files where the agency's AVM model has high confidence in property value. Waivers are more common on rate-and-term refinances than on purchases. Cash-out refinances rarely get waivers. Subject to AUS findings and Fannie/Freddie guidelines.
Where this can move.
Property condition, comparable sales availability, appraisal waiver eligibility, and Reconsideration of Value can change the appraised value.
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More conventional questions on Appraisal.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.