Can I get an appraisal waiver on a conventional refinance?
Sometimes. Fannie Mae's DU may offer value acceptance (an appraisal waiver) on certain limited cash-out and cash-out refinances. It is not available on 2-4 unit homes, manufactured homes, manually underwritten loans or values of $1,000,000 or more, and the lender can still order an appraisal.
What this actually means.
Value acceptance is offered by Fannie Mae's Desktop Underwriter when the loan is submitted; you cannot request it. Eligible loans include certain purchase, limited cash-out and cash-out refinance transactions on one-unit properties (including condos) with an Approve/Eligible recommendation. Ineligible cases include 2-4 unit properties, co-ops, manufactured homes, leasehold properties, manually underwritten loans and loans where the value or price given to DU is $1,000,000 or more. The lender must still order an appraisal when one is legally required, when rental income from the home is used to qualify, or when it believes one is warranted. Subject to AUS findings.
Where this can move.
Rate environment, equity, credit, current loan type, seasoning, AUS findings (appraisal waiver eligibility), and program rules can change the answer.
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More conventional questions on Refinance.
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.