Understanding the Appraisal Waiver Program: 2025 guide for homebuyers
When you’re buying or refinancing a home, one of the most time-consuming (and sometimes costly) steps is the appraisal. Traditionally, lenders require a licensed appraiser to evaluate the property’s market value to ensure it matches the loan amount.
But in recent years, the Appraisal Waiver Program—also known as a Property Inspection Waiver (PIW)—has become more common, streamlining the process for eligible borrowers. Here’s everything you need to know about appraisal waivers in 2025.
What is an Appraisal Waiver?
An appraisal waiver allows eligible borrowers to skip the traditional in-person appraisal when buying or refinancing a home. Instead, the lender uses data and modeling (like Fannie Mae’s Collateral Underwriter or Freddie Mac’s ACE system) to assess the home’s value based on prior appraisals, public records, and market data.
This means no appraiser visits, no scheduling delays, and no $500+ appraisal fees—saving you time and money.
Who offers Appraisal Waivers?
Appraisal waivers are primarily offered through:
- Fannie Mae (Property Inspection Waiver – PIW)
- Freddie Mac (Automated Collateral Evaluation – ACE)
- Select lenders who are partnered with these government-sponsored enterprises (GSEs)
Benefits of the Appraisal Waiver Program
No appraisal fee (save $400–$800)
Faster loan process (skip the 7–10 day wait)
Fewer delays or disputes over value
Reduces risk in competitive markets
Who Qualifies in 2025?
Eligibility for an appraisal waiver depends on several factors:
| FACTOR | REQUIREMENTS |
| Loan type | Conventional (backed by Fannie Mae or Freddie Mac) |
| Property type | Single-family residence (owner-occupied) |
| Loan purpose | Purchase or refinance |
| LTV ratio | Typically ≤ 80% for purchases, ≤ 90% for refinances |
| Credit profile | Strong borrower credit history and income |
| Past appraisal data | Prior appraisals must exist in the GSE database |
Note: FHA, VA, and USDA loans generally do not offer appraisal waivers as of 2025.
When You Won’t Get an Appraisal Waiver
Even if you’re hoping to skip the appraisal, you might not qualify if:
- You’re buying a multi-unit or investment property
- The home has unusual features or condition issues
- You’re using down payment assistance
- Your loan has a high loan-to-value (LTV) ratio
- The system flags any risk concerns with the data
How Do You Get One?
- Apply with a lender that offers Fannie Mae or Freddie Mac loans.
- Your lender will input your data into Desktop Underwriter (DU) or Loan Product Advisor (LPA).
- The system will automatically determine if your loan qualifies for a waiver.
- If approved, no appraisal is required—you move directly to closing.
Final Thoughts
The Appraisal Waiver Program can save time, reduce stress, and lower costs for qualified borrowers. While not everyone will qualify, it’s a valuable option in today’s market—especially for those with solid credit, a strong equity position, and a straightforward property.
Talk with one of our experienced loan officers today if you want to know more about our appraisal waiver program.
