Appraisal Waiver in Florida: When the Lender Skips the Appraisal and When It Should Not
An appraisal waiver Florida borrowers receive from automated underwriting saves a fee and a week. It also removes the one inspection a lender would have done. Take it with care on older homes.
Educational content only. This article is for informational purposes and does not constitute financial, legal, or lending advice. Loan programs, rates, and eligibility requirements change frequently. Consult a licensed mortgage professional before making any borrowing decision. Mortgage Capital | NMLS# 1859012 | Licensed in Florida.
An appraisal waiver Florida borrowers receive from the agencies' automated underwriting saves the appraisal fee and a week of waiting.
It also removes the only look at the property a lender would have taken. Take it with care on older homes and condos. Our guide to low appraisals in Florida covers the other outcome.
What it is
Fannie Mae and Freddie Mac offer to accept the lender's estimate of value without an appraisal on some files.
The Fannie Mae value acceptance page describes the programme.
Automated underwriting decides based on prior appraisal data and the loan profile.
The lender may still order an appraisal.
The borrower can decline the waiver.
Who gets offered one
Refinances more than purchases.
See our guide to refinance appraisals in Florida.
Lower loan-to-value, strong credit, single-family homes with a recent appraisal on file.
Condos and rentals less often.
Purchases in the agencies' data-rich markets, including much of South Florida.
What you save
The appraisal fee, several hundred dollars.
A week or more of turn time.
See our guide to closing date delays in Florida.
No risk of a low appraisal derailing the loan.
On a refinance, those are real benefits.
What you give up
An independent value opinion.
An interior inspection by someone with no stake in the sale.
Notes on condition, permits and visible defects.
On a purchase, the appraisal is a second set of eyes on the price.
A waiver removes it.
Overpaying
On a purchase, a waiver means the lender accepts the contract price as value.
A buyer in a bidding war can overpay with no appraisal to say so.
See our guide to low appraisals in Florida.
Your own inspection and comparable sales research replace it.
Ask your agent for a CMA before waiving.
Condition
An appraiser notes roof condition, deferred maintenance and safety items.
See our guide to four-point inspections in Florida.
A home inspection covers condition more thoroughly anyway.
Never skip the inspection because the appraisal was waived.
The two do different jobs.
Florida-specific risks
Older homes with roof, panel and wiring issues.
See our guide to roof age and your mortgage in Florida.
Condos with assessment and inspection issues.
See our guide to condo questionnaires in Florida.
Flood zones and elevation.
Condos and waivers
Waivers on condos are rarer and the building review still happens.
See our guide to refinancing a condo in Florida.
A waiver does not skip the questionnaire.
Unit value in a building with pending assessments is uncertain.
An appraisal helps you as much as the lender.
Refinances
The common case; you already own the home.
See our guide to rate-and-term refinancing in Florida.
A waiver at a conservative value is low risk.
A cash-out at maximum loan-to-value on a waiver deserves more thought.
The lender's value estimate may be below market, limiting the cash.
When the estimate is low
The waiver's value can come in below what you think the home is worth.
See our guide to loan-to-value in Florida.
That can push you into PMI or a lower cash-out.
Ordering an appraisal may support a higher value.
Weigh the fee against the difference.
PMI cancellation
Cancelling PMI on the basis of value requires an appraisal, not a waiver.
See our guide to removing PMI in Florida.
A refinance with a waiver at 80 percent avoids PMI on the new loan.
Different processes.
Know which you are in.
FHA, VA and USDA
Government purchase loans require an appraisal with property standards.
See our guide to VA home inspections in Florida.
Streamline refinances skip it.
See our guide to the FHA streamline refinance in Florida.
No waiver programme like the agencies'.
Jumbo and portfolio
Bank jumbo loans usually require a full appraisal, sometimes two.
See our guide to refinancing a jumbo loan in Florida.
Portfolio lenders decide their own.
Waivers are an agency feature.
Ask before assuming.
Hybrid and desktop appraisals
Between a waiver and a full appraisal: an inspector visits and an appraiser values from the data.
Cheaper and faster than full.
Some condition review.
The agencies expanded these options.
Ask which the lender will use.
Deciding
Refinance, conservative value, home you know: take the waiver.
Purchase, competitive price, older home or condo: consider paying for the appraisal.
Cash-out at the edge of loan-to-value: an appraisal may help.
Never skip the home inspection either way.
The fee is small next to the price.
Asking for one
The waiver is offered by the automated system, not requested.
A lower loan amount or a larger down payment can change the result.
Ask the lender to run the file both ways if the fee matters.
Some lenders decline waivers as an overlay.
A broker knows which do.
Where to start
Ask the lender whether a waiver was offered and at what value.
Compare that value to recent sales your agent pulls.
Then start a conversation and we will decide together whether to accept it.