By Sally Tansill, September 25, 2025
What Determines If a Home Gets an Appraisal Waiver?
When you’re buying or refinancing a home, one of the biggest steps in the mortgage process is the home appraisal—an assessment of the property’s market value by a licensed professional. But in some cases, borrowers may qualify for an appraisal waiver, which can save time and money.
So how do you know if a home is eligible for an appraisal waiver? Here’s what you need to know.
🔍 What Is an Appraisal Waiver?
An appraisal waiver means that Fannie Mae or Freddie Mac (the government-sponsored enterprises that back most conventional loans) has determined that an appraisal is not necessary for your transaction. Instead of requiring a full appraisal, they rely on automated valuation models (AVMs) and public data to estimate the home’s value.
✅ Main Factors That Influence Appraisal Waiver Eligibility
Not every home or borrower qualifies for a waiver. Here are the primary factors that determine eligibility:
1. Loan Type & Purpose
The type of loan you’re applying for has a major impact:
Rate-and-term refinances (where you’re just changing the rate or term, not taking cash out) are more likely to qualify.
Purchases may also qualify, but it depends more heavily on other criteria.
Cash-out refinances are less likely to get a waiver.
Jumbo loans (loan amounts above conforming limits) typically do not qualify.
2. Loan-to-Value (LTV) Ratio
This refers to how much you’re borrowing compared to the value of the home:
Lower LTV ratios (more equity or higher down payments) are more favorable.
For example, Fannie Mae may grant a waiver for a purchase if the LTV is ≤80% for a primary residence.
3. Property Type
Some property types are more eligible than others:
Single-family homes (including condos) are most likely to qualify.
Multi-unit properties, manufactured homes, or unique homes are typically not eligible.
4. Borrower Profile
Your credit and financial profile also play a role:
Strong credit scores, stable income, and clean financial history improve chances.
Waivers are more likely for borrowers with desktop underwriting (DU) or loan product advisor (LPA) approval from Fannie Mae or Freddie Mac.
5. Previous Appraisal Data
Fannie Mae and Freddie Mac use property databases:
If the home has a recent appraisal (especially within the last 5–10 years) in their database, a waiver is more likely.
No prior data? The system may require a new appraisal.
6. Property Location
Market conditions and data availability vary by region:
Homes in areas with plenty of comparable sales and stable markets are more likely to get waivers.
Rural or unique market areas may lack the necessary data.
7. System Decision (DU or LPA)
Ultimately, the decision to grant an appraisal waiver is made by automated underwriting systems:
Fannie Mae’s Desktop Underwriter (DU) or Freddie Mac’s Loan Product Advisor (LPA) analyze the risk and data.
These systems decide based on algorithms, past appraisal data, and current market analysis.
🚫 When an Appraisal Waiver Is Not an Option
Even if you meet the criteria, you might still be required to get an appraisal if:
There are concerns about the property condition.
The loan is non-conforming (e.g., jumbo, FHA, VA).
The lender has stricter guidelines.
The borrower or lender wants a second opinion on the home’s value.
🏡 Final Thoughts
Appraisal waivers can speed up the mortgage process and reduce costs—but they’re not guaranteed. If you’re considering buying or refinancing, talk to your lender early to see if your loan might qualify.
Understanding the factors that go into the decision—like LTV, loan type, property data, and your financial profile—can help you plan ahead and set expectations.
Thinking of refinancing or buying a home? Contact me to find out if your property qualifies for an appraisal waiver—it might save you hundreds of dollars and shave days off your timeline.
Sally Tansill
Broker | ABR® | HFR | OR
She/Her
Sally moved to Portland with her family in 2012 from Brooklyn, NY, seeking an improved quality of life and a change of pace from her busy career in the sports industry.
Moving with very little personal connection to the city was difficult and at times overwhelming, but she knew it would suit her lifestyle and be a place that reinforced the values she wanted for her children, and she was right! A mother of three (four, including her dog Eli), she has navigated new neighborhoods, schools, and other city resources and looks forward to sharing that knowledge with people looking to create or renew their own sense of place.
The idea of "home" means something different to everyone and Sally's goal for her clients is to find the place where that word resonates for them. Every stage of life provides an element of transition and that often comes with a desire to change your surroundings. For some, it could be a question of space while for others it is changing scenery between the city and the country. Sally has lived in apartments, condominiums, teepees (long story), studios, rented houses, and now owns a home as well as a few rental properties with her husband in Portland.
Sally is an avid skier and music fan and loves that this city provides the opportunity to pursue all of those interests in such an accessible way. Her sports loyalties still lie on the east coast, but she has caught the Portland Timbers bug and loves going to games with her family: the camaraderie is contagious! Ever the optimist, she believes that positive relationships and people are the key to personal and professional success, especially when it comes to real estate! She loves sharing her experience and wants to guide her clients to the place they call home.
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- T: 917-797-2776
- sally@livingroomre.com
