What Is an Appraisal Waiver—and When Can You Get One?

Posted by : Moneek

When buying or refinancing a home, one of the required steps is usually a home appraisal—an independent assessment of the property’s value. But did you know it’s possible to skip this step in certain cases? That’s where an appraisal waiver comes in.

What’s an Appraisal Waiver?

An appraisal waiver allows you to bypass the traditional in-person appraisal process. Instead of a licensed appraiser evaluating your property, Fannie Mae or Freddie Mac may accept the estimated value based on their internal data models and property records.

In short, it’s a green light to move forward with your mortgage without the added time and cost of a formal appraisal.

How Do You Qualify?

Appraisal waivers aren’t automatically granted—they’re offered under specific conditions, mostly for low-risk loans. Here’s what typically qualifies:

Strong Credit & Stable Income: Borrowers with a solid financial profile are more likely to qualify.
Conventional Loans Only: Most appraisal waivers apply to conventional (not FHA, VA, or USDA) loans.
Recent Sale or Refinance: If the home was recently appraised or sold, there’s often enough data to skip a new appraisal.
Lower Loan-to-Value Ratio (LTV): If you’re making a large down payment or have built up significant equity, that reduces the lender’s risk.

MIG will submit your application through an automated underwriting system (like Fannie Mae’s DU or Freddie Mac’s LPA), which will determine if an appraisal waiver is eligible.

Pros of an Appraisal Waiver

Saves Time: Skipping the appraisal can speed up closing by several days or even weeks.
Saves Money: No need to pay the typical $300–$500 appraisal fee.
Less Stress: No waiting around for an appraiser or worrying they’ll undervalue the home.

When You Might Not Want a Waiver

It might seem like a no-brainer, but there are times when an appraisal might work in your favor—especially if you’re buying a home below market value. An independent appraisal could reveal a lower value, possibly giving you leverage to negotiate a better deal.

Also, if the home’s condition has significantly changed or isn’t reflected in public records, an in-person appraisal may be more accurate.

Final Thoughts

Appraisal waivers can simplify and streamline your mortgage process—but they aren’t guaranteed or right for everyone. MIG will guide you through your eligibility and help you decide whether accepting a waiver makes sense for your situation.

Have questions about your mortgage options? I’m here to help!

What Is an Appraisal Waiver—and When Can You Get One?