Reviewed by: Andrew Beck, Senior Loan Advisor | NMLS #1970720
November 12, 2026
An appraisal waiver lets eligible borrowers skip a traditional home appraisal when getting a mortgage. It can save money and remove a step from the closing process, but it also means going without an independent appraisal of the home’s value.
Key takeaways
- You can’t get a waiver just by asking. Fannie Mae’s or Freddie Mac’s underwriting system must offer one for your loan and property.
- It can save time and money. You may avoid an appraisal fee and the wait for a report, but an earlier closing isn’t guaranteed.
- It doesn’t confirm what the home is worth. On a purchase, the system accepts the contract price for underwriting without a new appraisal.
- An appraisal waiver isn’t an appraisal contingency waiver. One concerns your mortgage; the other concerns your purchase contract.
What is an appraisal waiver?
An appraisal waiver allows an eligible conventional mortgage to close without a traditional appraisal. Fannie Mae calls its program value acceptance; Freddie Mac calls its version automated collateral evaluation (ACE). Their rules differ, but both let lenders use property data instead of a new appraisal when the underwriting system makes an eligible offer.
Your lender submits the loan and property details for automated underwriting. If the system offers a waiver and the lender can use it, you may skip the appraisal. You can’t force the system to issue an offer, and an offer can change before closing.
Some loans receive a different option: value acceptance + property data (Fannie Mae) or ACE+ PDR (Freddie Mac). A trained collector visits the home and records its characteristics and condition, but doesn’t develop an independent appraisal opinion of value. There may be a data-collection fee.
Benefits and drawbacks of an appraisal waiver
What you gain: You may avoid a traditional appraisal fee, which generally costs several hundred dollars, and the time needed to schedule and complete the appraisal. That’s one less expense among your closing costs and one fewer step in underwriting. Still, your purchase contract and other loan requirements may keep your closing date unchanged.
What you give up: Without an appraisal, you don’t get an independent opinion of market value or an appraisal report for your records. If you’ve agreed to pay more than similar homes nearby, you won’t have a new appraisal to flag that difference.
An appraisal isn’t a home inspection either. Even when a property data collector visits, the visit doesn’t replace a thorough inspection. For more on the distinction, check out our What Is a Mortgage Appraisal? article.
Who qualifies for an appraisal waiver?
Appraisal waivers apply to eligible conventional purchase and refinance loans. The underwriting system considers the property, loan type, loan-to-value ratio (LTV), and other details; meeting a published limit doesn’t guarantee an offer.
As of November 12, 2026, Fannie Mae allows traditional value acceptance on eligible purchases of primary residences and second homes up to 90% LTV (generally at least 10% down). Certain purchases using value acceptance + property data can qualify up to 97% LTV (generally 3% down). Refinance limits vary by transaction and property type. Freddie Mac’s ACE also allows certain purchases up to 90% LTV.
Not every home or transaction is eligible. Fannie Mae excludes, among others, two- to four-unit properties, manufactured homes, co-ops, purchases involving a gift of equity, and transactions valued at $1 million or more. Freddie Mac has separate rules, and lenders or mortgage insurers may impose additional requirements.
Your credit score alone doesn’t determine whether a waiver is offered. You can check the full rules in Fannie Mae’s Selling Guide and Freddie Mac’s ACE guidance.
How does an appraisal waiver work?
- Your lender submits your loan. Fannie Mae’s Desktop Underwriter or Freddie Mac’s Loan Product Advisor evaluates the loan and property information.
- The system returns an answer. It may offer a traditional waiver, a property-data alternative, or require a traditional appraisal.
- Your lender confirms the requirements. An appraisal may still be needed if a law or mortgage insurer requires one, the lender identifies concerns about the property, or changes to your loan affect eligibility.
You can ask your loan advisor whether an offer is available, and you can request a traditional appraisal instead. If you’d prefer one, ask about the cost and any effect on your closing timeline. Once an appraisal is obtained, a Fannie Mae value acceptance offer can no longer be used.
Appraisal waiver vs. appraisal contingency
An appraisal waiver affects the valuation your mortgage lender requires. An appraisal contingency is a clause in your purchase contract that may give you options if an appraisal comes in below the agreed price.
Getting an appraisal waiver doesn’t automatically remove your appraisal contingency. If your loan won’t require an appraisal, ask your real estate agent or attorney how the contingency applies before changing your contract.
You might also see an appraisal waiver form in your loan disclosures. That’s different, too: it generally concerns your right to receive copies of appraisals or other valuations at least three business days before closing. Waiving the delivery timing doesn’t eliminate an appraisal requirement.
Tomo Mortgage’s Appraisal Coverage is also a separate benefit for eligible buyers when a completed appraisal comes in low. It doesn’t waive the appraisal requirement; see the program terms.
Should you accept an appraisal waiver?
For many buyers, skipping an appraisal is a practical way to reduce costs and simplify closing. But requesting one may make sense if you:
- Offered substantially more than comparable homes sold for.
- Are buying an unusual property with few comparable sales.
- Want an independent valuation before committing to the purchase.
If your concern is the home’s physical condition, prioritize an inspection rather than relying on an appraisal. Before deciding, ask your loan advisor whether the waiver includes a property visit, what could cause it to be lost, and what ordering an appraisal would cost.
Find out what your loan requires
Appraisal waiver eligibility depends on the specific loan and property, so preapproval alone typically can’t confirm whether you’ll receive one.
Get preapproved with Tomo Mortgage to explore your options, then ask your loan advisor about valuation requirements once you have a home in mind.
Frequently asked questions
Can you get an appraisal waiver on an FHA or VA loan?
Not through Fannie Mae’s or Freddie Mac’s programs, which are for eligible conventional loans. Some government-backed refinancing programs, including FHA Streamline and VA IRRRL, generally don’t require a new appraisal under their separate rules.
Does an appraisal waiver mean the home is worth what I paid?
No. On a purchase, the underwriting system accepts your contract price without a new appraisal. That isn’t independent confirmation of the home’s market value.
Can an appraisal waiver be withdrawn before closing?
Yes. Changes to loan or property details, or new information that warrants an appraisal, can affect the offer. Your lender may then need another eligible valuation option or an appraisal.
Do I still need a home inspection?
A home inspection is still strongly recommended. An appraisal and a property data-collection visit are not substitutes for an inspection of the home’s physical condition. Learn more about what a home inspection covers.