What are They? Who's Eligible?
Many changes surrounding residential appraisals have occurred recently. Some have come as a response to the challenges presented by Covid-19. Others were put into place prior to our facing current viral challenges.
First, it should be pointed out before proceeding: No two loans (or borrower(s) are the same, so no blanket-statement can be made or cover every situation or appraisal requirements required in every transaction. Each scenario must be considered singularly and upon its own merit.
Certain conventional loans can receive an "Appraisal Waiver" ... when either the Property Price (for purchases) or Estimated Value (for Refinances) ... is found to be acceptable, and in the Range of Values within the massive databases, for that property.
The notations received in Automated Underwriting can allow for a loan to be approved and successfully Closed without an appraisal being performed. Please note, however, that only a small percentage of Loans with less than 20% down receive this "Waiver of Appraisal".
- A Desktop Review (No Inspection)
- Exterior Appraisal Only (No need to enter the home)
- A traditional Appraisal
- Single-Family Units, whether they be detached single-family residences, attached townhomes, or condominiums, are the primary properties eligible for Appraisal Waivers
- Investment Properties (meeting the above criteria) can also receive Appraisal Waivers at lower Loan-To-Value percentages
- Second Homes are also eligible for Appraisal Waivers if they meet the above-mentioned criteria
However, the overriding message is ... the mortgage industry is trying hard to provide some flexibility and relief during the uncertain times we are currently facing. Staying responsive to the needs of borrowers remains a positive and prime focus and is especially warranted during this challenging time.