When an appraisal is waived on a conventional mortgage transaction, it’s known as a property inspection waiver.
A PIW is determined by an automated underwriting system (AUS) either from Fannie Mae, or Freddie Mac. The systems compare outside data against information on a loan application to determine whether to issue a PIW, in addition to underwriting results.
Fannie Mae and Freddie Mac have collected appraisal data from loans they have purchased throughout the years, and if they have enough information and a loan application meets their requirements, the appraisal could be waived.
What does this mean for you?
It saves you money
Appraisal prices can cost hundreds of dollars and could be waived.
Allows for a faster closing
With a PIW, you avoid the time it takes to schedule an appraiser to inspect a home and file his or her report.
A PIW could potentially cut your underwriting process in half, getting you to the closing table more quickly.
If you have any questions concerning required down payments, or which programs offer PIW’s, then reach out to our team and we will be happy to help!