Is it possible to get a mortgage without an appraisal?

Fannie Mae has been slowly rolling out something called the “Property Inspection Waiver”(PIW).  It is available to both new home buyers and refinances under certain situations. When a PIW is available the borrower can save both time and money by shortening the loan origination process.  The Property inspection waiver provides a no-cost alternative to the traditional appraisal process.

Mortgage Process for getting a PIW

Eligibility requirements for PIW consideration;

• One-unit properties, including condominiums
• Limited cash-out refinance transactions: on principal residences and second homes
• Investment properties up to 60% LTV/CLTV
• Purchase transactions: on Principal residences and second homes up to 80% LTV/CLTV

While most Loans will not receive an Approve/Eligible recommendation we are seeing them more frequently over the last month. If a property is not eligible they will require an appraisal by a qualified residential appraiser to establish the market value.

The following are just a few examples of what is not eligible for a PIW offer:

• Properties located in a disaster-impacted area
• Construction and construction-to-permanent loans
• Two- to four-unit properties
• Loans in which the value of the subject property provided to DU is $1,000,000 or greater
• Cooperative units and manufactured homes
• Loans for which the mortgage insurance provider requires an appraisal
• Loans for which rental income from the subject property is used to qualify

For a PIW to be considered for a refinance transaction a prior appraisal must be found for the subject property in Fannie Mae’s Collateral Underwriter (CU) data and that appraisal must be associated with one of the borrowers on the mortgage. Mortgage 1’s early adoption of the Property Inspection Waver is another example of how we use technology to streamline the mortgage process. If you are ready to start our digital mortgage process, click “Start Here”.

Is it possible to get a mortgage without an appraisal? Yes with a “Property Inspection Waiver”(PIW)

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