Mortgage, PMI & ROV
Appraisal Waivers vs. Appraisals
Not every mortgage transaction requires a full appraisal — here's how the alternative works, and why.
Fannie Mae's Property Inspection Waiver (PIW) and Freddie Mac's Automated Collateral Evaluation (ACE) let certain qualifying loans skip a traditional appraisal — here's what that actually means, and why it doesn't apply to every transaction.
What Determines Eligibility
Loan-to-Value Ratio
Waivers are generally offered on lower-risk loans, which often means a lower loan-to-value ratio relative to the property — the exact thresholds are set by Fannie Mae and Freddie Mac and change periodically.
Transaction Type
Eligibility differs between purchases, rate-and-term refinances, and cash-out refinances — cash-out transactions are generally treated as higher risk and less likely to qualify.
Property and Loan Characteristics
Property type, occupancy, and loan amount relative to conforming loan limits all factor into whether the automated underwriting system offers a waiver for a specific loan.
How This Differs From What We Provide
A waiver relies on the lender's own automated underwriting system and existing data — it isn't a valuation service, and it isn't something we offer or influence. We provide full, independent, licensed appraisals — the alternative when a waiver isn't offered, or when a borrower or lender prefers one anyway.
Why Some Borrowers Still Want a Full Appraisal
Even when a waiver is offered, some borrowers prefer the documented confidence of an independent, inspected opinion of value — particularly for a unique property, a higher-value home, or simply personal peace of mind about the transaction.
What This Does Not Mean
This isn't lending advice, and specific eligibility criteria and thresholds change periodically — confirm current details with Fannie Mae, Freddie Mac, or your lender. We do not issue or influence appraisal waivers.
Frequently Asked Questions
This information is provided for general educational purposes and reflects general Fannie Mae/Freddie Mac guidance, which changes periodically — confirm current details with your lender.