Key Takeaways
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Home appraisal waivers speed up closing by removing the need for a physical property inspection.
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Borrowers can save up to $2,000 in closing costs by qualifying for a waiver.
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Waivers work best for low-risk loans with high credit scores and strong equity or down payments.
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Automated valuations carry risk, so traditional appraisals may still offer more protection in uncertain markets.
When you’re buying a home, refinancing a home, or preparing for closing, one step that often adds time and cost is the appraisal. However, in some cases, you can skip it entirely with a home appraisal waiver. This option can lower your closing costs, accelerate the mortgage process, and help you close faster.
What Is a Home Appraisal Waiver?
A home appraisal waiver allows you to skip the traditional in-person appraisal. Instead, lenders use data from automated systems and recent property sales to estimate your home’s value. These waivers come from Fannie Mae’s Desktop Underwriter (DU) or Freddie Mac’s Loan Product Advisor (LPA) and are only available for certain loan types and borrower profiles.
Why Lenders Offer Appraisal Waivers
Lenders rely on automated valuation models (AVMs) when risk is minimal. Appraisal waivers reduce processing time and eliminate unnecessary fees.
| Reason | Explanation |
| Reliable Data | AVMs use recent comparable sales and public records to value properties. |
| Low Risk to Lender | More equity or a higher down payment reduces default risk. |
| Government Program Support | Fannie Mae and Freddie Mac back waivers for low-risk, eligible loans. |
Appraisal Waiver Requirements in 2025
Qualifying for an appraisal waiver depends on property type, credit score, LTV ratio, and system eligibility. Here’s what lenders look for:
| Requirement | Details |
| Property Type | Must be a single-family home or condo on a conventional loan. Not available for new builds or multi-family properties. |
| Credit Score | A score of 740 or higher significantly increases approval chances. |
| Loan-to-Value (LTV) | The lower your LTV, the more likely you’ll qualify. Large down payments or strong equity help. |
| System Eligibility | Loan must run through DU or LPA and receive an appraisal waiver flag. |
Benefits of a Home Appraisal Waiver
A home appraisal waiver speeds up your mortgage process by eliminating the need for a scheduled, in-person property inspection. Without the delay of coordinating with an appraiser, you can move from offer to closing much faster—sometimes shaving off a week or more. This timing advantage becomes crucial in competitive markets where buyers must act quickly.
Traditional appraisals often cost between $400 and $2,000, depending on the property. When you qualify for a waiver, you skip that expense entirely. In addition, removing the appraisal contingency strengthens your offer. Sellers prefer deals with fewer obstacles, so buyers who waive the appraisal often stand out in bidding wars or tight markets.
Cons of a Home Appraisal Waiver
While appraisal waivers offer convenience, they also carry risks. Automated systems may assign a home value without catching critical issues—like roof damage, outdated electrical systems, or poor interior conditions. If the system overvalues the home, you might pay too much and end up with negative equity if prices drop.
Lenders can also revoke a waiver. If you take on new debt, change jobs, or experience a dip in your credit score before closing, the lender may no longer consider your loan low-risk. In that case, they will require a full appraisal, adding time, cost, and stress late in the process.
How to Get an Appraisal Waiver
To boost your chances, focus on lender choice, credit strength, and document quality.
| Step | What to Do |
| Choose the Right Lender | Work with lenders who use DU or LPA and actively offer appraisal waivers. |
| Improve Credit & LTV | Aim for a 740+ credit score and a low LTV by putting more money down. |
| Ask During Preapproval | Your lender can check waiver eligibility during automated underwriting. |
| Provide Complete Info | Ensure all documents—income, assets, property—are accurate and complete. |
Should You Use An Appraisal Waiver?
Use an appraisal waiver if you have a strong financial profile and full confidence in the property’s condition and value. Buyers and homeowners with high credit scores, low loan-to-value ratios, and conventional single-family homes or condos usually benefit the most. When these factors align, you can save time, reduce fees, and simplify your loan process without increasing risk.
On the other hand, skip the waiver if you feel uncertain about the home’s condition or market value. A traditional appraisal gives you an objective opinion from a licensed professional—something automated systems can’t fully replace. If you’re stretching your budget or buying in a rapidly changing market, an appraisal offers protection that’s worth the extra step.
Bottom Line
If you qualify, a home appraisal waiver can be a powerful way to speed up your home purchase or refinance while cutting down on costs. Understanding the requirements and working with the right lender will increase your chances of approval. While this shortcut won’t work for every scenario, it could save you hundreds—or even thousands—of dollars when buying or refinancing a home in 2025.
FAQs About Appraisal Waivers
No SSN required. Zero impact to credit. Your Information is never sold.