Skip the appraisal, reduce your closing costs, and speed up your mortgage process with “Value Acceptance.”
What is an Appraisal Waiver?
An appraisal waiver is an automated offer to accept the property value without a physical inspection. By leveraging millions of data points and historical records, lenders can often confirm a home’s value instantly using proprietary algorithms. This is often the quickest path for those wondering is a conventional loan right for you.
- Significant Savings: Eliminate the $500–$900 fee typically charged for a professional appraisal.
- Accelerated Timeline: Shave up to 14 days off your closing process by removing the scheduling and report-writing lag.
- Financial Certainty: Eliminate the risk of a “low appraisal” that could force you to bring more cash to the table or renegotiate the deal.
2025 Eligibility Requirements
To qualify for a waiver, your loan must meet specific conventional loan requirements. As of early 2025, the Loan-to-Value (LTV) thresholds have been expanded to allow more homeowners and buyers to participate.
| Transaction Type | Maximum LTV (Loan-to-Value) |
|---|---|
| Primary Residence Purchase | Up to 90% (10% Down Payment) |
| Limited Cash-Out Refinance | Up to 90% |
| Cash-Out Refinance | Up to 70% |
| First-Time Buyer Programs | See Conventional 97 Guide |
Value Acceptance vs. Property Data (Hybrid)
If your loan file does not receive a full waiver, you may still qualify for a Hybrid Option. In this scenario, a licensed appraiser is not required; instead, a trained third-party data collector visits the property to take photos and generate a floor plan. This is a common feature in affordable lending paths like HomeReady or Home Possible.
When is a Waiver Ineligible?
While technology has come a long way, some transactions still require a human touch. A full appraisal is mandatory if:
- The property is a 2-4 unit multi-family home.
- The home is a manufactured or mobile home.
- The property is located in a federally declared disaster area.
- The purchase price exceeds local loan limits for conforming loans.
Pro-Tip: Appraisal vs. Home Inspection
It is important to remember that an appraisal waiver is a financial tool for the bank, not a safety check for the buyer. Whether you are buying in Kansas City or Overland Park, we always recommend a professional home inspection to ensure your investment is structurally sound.