Last week Fannie Mae announced some big news – Purchase transactions are now included in their Property Inspection Waiver program, meaning certain purchases are eligible to have no appraisal required!
This news is a huge advancement from the Property Inspection Waiver product that was announced late 2016 (see our post here) that allowed appraisal requirement waivers on refinance transactions only. Not having to get an appraisal will shed a significant amount of time from the mortgage process, not to mention saving borrowers money. This program is now implemented and is available on one-unit purchases (including condos) when buyers put at least 20% down. It’s currently available to primary residence and second home purchases but is not offered for investment properties. Borrowers still have the option of having an appraisal done if they prefer.
So now you may ask yourself how are they doing this and what does it mean? Through Fannie Mae’s program Collateral Underwriter (CU), they are able to look up past appraisals and see if it is associated with the current borrowers on the loan. If the appraisal information is found, they will use that to determine if the file is eligible for a PIW. This process will not only save borrowers a lot of money on appraisal fees, but ...