Appraisal waivers can save buyers hundreds of dollars by eliminating the need to pay for a home appraisal.
Jump to insightAppraisal waivers are more common on refinances than purchase loans.
Jump to insightYou’re most likely to get an appraisal waiver with a conventional loan, as other loan types require appraisals in some form.
Jump to insightWithout an independent appraisal, buyers may rely solely on the seller's asking price, potentially overpaying for a property.
Jump to insightHow does an appraisal waiver work?
An appraisal waiver is an agreement between the buyer and the lender that allows you to forgo the traditional appraisal process. Instead of a professional appraiser visiting the property and determining its value, an appraisal waiver relies on automated methods to estimate the home's value. These methods often involve algorithms and databases of recent sales transactions and property characteristics.
Appraisal waivers can save buyers up to $600 on formal appraisal fees and expedite the homebuying process.
The use of an appraisal waiver is typically determined by the lender and depends on various factors such as the loan type, the amount of down payment and the buyer’s creditworthiness. Lenders are more likely to do appraisal waivers on refinances versus new purchases, especially if you bought your home recently, since recent sales make it easier to verify the property’s value.
» MORE: Low home appraisal: why it happens and how it can affect your refinance
Eligibility requirements for appraisal waivers
Not every loan or property qualifies for an appraisal waiver. Lenders and government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac use automated tools and recent market data to decide when a waiver is safe. Some key factors that affect eligibility include:
- Property type: Single-family homes are most likely to qualify. Condos and townhomes sometimes qualify, while multiunit or unusual properties usually need a full appraisal.
- Loan-to-value ratio (LTV): Lower LTVs, meaning more equity in the home, make a waiver more likely; 80% or lower is best.
- Recent sales or appraisal history: Homes that were sold or appraised recently give lenders more confidence in the value.
- Loan type and amount: Standard, conforming purchase loans or rate-and-term refinance loans are the most common candidates.
- Occupancy: Primary homes are more likely to qualify than second homes or investment properties.
Example appraisal waiver scenarios
Here are a few typical situations showing which loans might qualify for appraisal waivers:
- Buying a single-family home: With a 75% loan-to-value ratio and occupancy as a primary residence, this type of loan is likely to qualify for a waiver because the home was recently sold and there are comparable sales nearby.
- Refinancing your home: A 70% LTV refinance on a home purchased within the last year has a strong chance for a waiver, as lenders can rely on recent sales data and the property’s clear value history.
- Refinancing an investment property: A 65% LTV refinance on a multiunit or unusual investment property usually does not qualify, since automated valuation tools have less reliable data for these homes.
Appraisal waivers for refinancing vs. purchasing
Appraisal waivers are more common for some loan types than others, and the likelihood of receiving a waiver can differ between refinances and home purchases.
- Refinances: Lenders are still more likely to offer appraisal waivers on refinances, especially when the home was purchased recently. Automated underwriting models have more historical data, which increases the likelihood of approval.
- Purchases: Waivers are less common for new home purchases because the property lacks recent transaction history, and lenders rely more on traditional appraisals to confirm market value.
During the COVID-19-driven 2020 to 2021 refinance surge — when federal interest rates reached historic lows — appraisal waivers were especially widespread. According to Working RE Magazine, nearly 70% of rate-and-term refinances in 2020 received appraisal waivers. This was largely because lenders had plenty of recent sales data and could confidently compare similar homes to determine their value.
More recent data from the American Enterprise Institute (AEI) show that overall waiver usage across all loans, including both purchase and refinance, has declined significantly since pandemic peaks. Today, appraisal waivers are much less common, generally applying to a smaller share of loans — just 16% in December of 2024.
Which lenders and GSEs offer appraisal waivers
Appraisal waivers aren’t available for every type of mortgage. FHA loans and most jumbo loans, for example, still require a full in-person appraisal regardless of borrower qualifications or market conditions.
Conventional loans
For conventional mortgages, appraisal waivers are made possible through the GSEs Fannie Mae and Freddie Mac. Fannie Mae offers Property Inspection Waivers (PIWs), while Freddie Mac provides appraisal waivers through its Automated Collateral Evaluation (ACE) system.
These waivers are generated through automated underwriting, using property data, recent comparable sales and market trends. Individual lenders don’t issue appraisal waivers on their own; instead, they participate in Fannie Mae or Freddie Mac programs and can only offer a waiver when the GSE’s system approves the loan for one.
VA loans
VA loans (loans through the Department of Veterans Affairs) follow a different model. In late 2022, a new federal law required the VA to modernize its appraisal process to reduce delays and improve access to VA home loans.
As a result, beginning in 2023, the VA expanded its use of alternative appraisal options, such as desktop or exterior-only appraisals, in limited situations. Even so, VA loans generally still require an appraisal and do not offer full appraisal waivers like those available for some conventional loans.
Pros and cons of an appraisal waiver
An appraisal waiver can save you time and money, but it’s important to weigh the pros and cons before deciding if it’s right for you. An appraisal can provide valuable information about the home you want to buy, so you'll want to be sure you’re comfortable waiving it.
“Without an appraisal, you might rely solely on the seller’s price.”
You might also base your decision on whether you're buying or refinancing. Reviewer A. from Tennessee, who was able to get their home refinanced within three weeks, told ConsumerAffairs, “The appraisal waiver was one of the best things that I think we had during this refinance.”
While many buyers appreciate that appraisal waivers can speed up the process, they can come with risks.
Pros
- Faster loan process: “Opting for an appraisal waiver can significantly expedite your home purchase,” said Shekhtman.
- Saves money: Appraisals generally cost from $200 to $600, and the borrower usually pays. With an appraisal waiver, you'll avoid this fee.
- Less stress: If a lender is willing to bypass the appraisal, it’s one less thing to worry about.
- Quicker access to refinancing benefits: For rate-and-term refinances, a waiver can speed up the process, letting you take advantage of lower rates sooner.
Cons
- Overpaying risk: “Without an appraisal, you might rely solely on the seller’s price,” said Shekhtman. “This increases the chances of overpaying if the price doesn’t match the actual market value.”
- Hidden property issues: Skipping a full appraisal means you might miss defects or problems with the home that could be discovered during a traditional appraisal.
- Future sales or refinancing complications: If you sell or refinance the home later, lenders or buyers may still require a formal appraisal, which could reveal issues or affect the property’s value.
- Insurance considerations: Some home insurance providers may require an official appraisal to confirm the home’s value, and skipping an appraisal now could complicate coverage or claims in the future.
Appraisal waiver vs. waiving appraisal contingency
Many homebuyers confuse an appraisal waiver with waiving the appraisal contingency, but they are very different.
- Appraisal waiver: Offered by lenders or GSEs, it allows a loan to proceed without a full appraisal because recent sales and automated data support the property’s value. The lender decides, and it can speed up the loan and save money.
- Waiving the appraisal contingency: A buyer option in a purchase contract, waiving the appraisal contingency means the buyer accepts the risk of proceeding even if the appraisal comes in lower than the offer. It does not remove the appraisal itself and increases the buyer’s financial risk.
How to get an appraisal waiver
Getting an appraisal waiver largely depends on your lender and the type of loan you're applying for. Here are the steps typically involved:
- Find a lender that offers appraisal waivers: Not all lenders offer this option, so you'll need to find one that does. Lenders that work with Fannie Mae’s or Freddie Mac’s automated underwriting systems are more likely to offer appraisal waivers.
- Apply for a mortgage: The appraisal waiver process typically begins when you apply for a mortgage. If you’re eligible (you have a low loan-to-value ratio, a strong credit history and are buying a property in a market with a lot of available data), your lender may offer you an appraisal waiver after assessing your loan application.
- Accept the waiver: If you’re offered an appraisal waiver, you can choose to accept it and proceed without an appraisal. If you decide to use a traditional appraisal, you will need to pay for it upfront.
FAQ
Is an appraisal waiver the same as a home inspection?
No, an appraisal and a home inspection are two different things. An appraisal determines the value of the property, while a home inspection looks for potential structural or mechanical issues with the home. You should not waive a home inspection.
Can I still get an appraisal if I’ve been offered a waiver?
Yes, even if you’re offered an appraisal waiver, you can choose to proceed with an appraisal for your own peace of mind.
What hurts a home appraisal?
If a home is in poor condition or has unusual features that are not common in the area (for example, an in-ground pool in an area without pools), it can be hard for the appraiser to accurately assign a value to the home. Additionally, if there are not many comparable homes in your neighborhood that have sold, this can also hurt your appraisal.
When does the buyer get an appraisal report?
The buyer usually receives a copy of the appraisal report shortly after the lender receives it, about a week or two after the appraisal is completed. An appraisal report describes the home’s condition, gives a detailed market analysis and states the appraised value.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- National Mortgage Professional, “Biden Signs New Law To Speed Or Waive Appraisals For VA Loans.” Accessed Dec. 18, 2025.
- National Fair Housing Alliance, “Incorporating Civil Rights and Consumer Perspectives in VA Appraisal Policies.” Accessed Dec. 18, 2025.
- Department of Veterans Affairs, “Congressionally Mandated Report: Recommendations for Improving Appraisal Delivery Times.” Accessed Dec. 18, 2025.
- Mortgage Equity Partners, “How Appraisal Waivers work in 2025.” Accessed Dec. 18, 2025.
- American Enterprise Institute (AEI) Housing Center, “Prevalence of GSE Appraisal Waivers.” Accessed Dec. 18, 2025.
