How an Appraisal Waiver Can Speed Up Your Mortgage Approval?

Waiting for an appraisal can feel like forever. If you're racing the clock to close on a home or refinance your current mortgage, that appraisal report might be the last hurdle standing in your way. But what if you could skip it entirely, and still stay fully compliant and secure? Welcome to the world of appraisal waivers.

Appraisal waivers have been gaining traction among lenders and borrowers alike for their potential to dramatically speed up loan approvals. But they're not a one-size-fits-all solution, and they come with specific criteria and compliance checkpoints.

• Appraisal waivers eliminate the need for traditional home appraisals in select mortgage scenarios.
• They can reduce costs, save time, and streamline the closing timeline.
• Not everyone qualifies; eligibility depends on loan type, property, and borrower profile.
• Lenders use automated underwriting systems (AUS) to issue waivers.
• Compliance, transparency, and proper disclosures remain essential throughout the process.

An appraisal waiver is when the lender skips the traditional in-person appraisal and instead uses automated data to validate a property's value. Fannie Mae and Freddie Mac (the government-sponsored enterprises, or GSEs) enable this option for qualifying properties through their automated underwriting systems.

• Speed: Skip the 7–10 day appraisal wait.
• Savings: No out-of-pocket appraisal fee (often $400–$700).
• Convenience: No home visits, appointments, or back-and-forth.
• Certainty: Instant property valuation confirmation.

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Check If You Qualify

• Not all loans qualify.Lenders must receive AUS approval.
• Waivers are only valid for specific property types and borrower profiles.

Eligibility depends on multiple factors:

• Loan Type: Conventional loans only. No FHA, USDA, or other government-backed programs.
• Loan Purpose: Purchase, limited cash-out refinance, or rate-and-term refinance.
• Property Type: Single-family homes, sometimes condos. No multi-units or investment properties.
• LTV Ratio (Loan-to-Value): Generally 80% or lower for purchases, 90% or lower for refis.
• Borrower Profile: Strong credit, verifiable income, and low risk.

Pro Tip: Even if you think your deal won’t qualify, let your lender run the numbers; you might be surprised.

Most lenders use Desktop Underwriter (DU) or Loan Product Advisor (LPA) to assess eligibility.

• DU = Fannie Mae’s AUS
• LPA = Freddie Mac’s AUS

If your loan file receives a “waiver eligible” response, the appraisal requirement is waived. Simple as that.

But don’t worry - your lender still ensures the home’s value makes sense with market data and automated tools.

Heads Up: A lender can override the waiver if they believe a full appraisal is necessary.

Yes - but most are manageable.

• Market volatility can lead to inaccurate valuations.
• Sellers may dispute value if the appraisal waiver offers a lower-than-expected figure.
• Appraisal waivers offer less protection in disputes than a traditional appraisal.

Still, for many borrowers, the speed and simplicity outweigh these risks.

If you're working with a modern, tech-forward lender, chances are you’ll encounter appraisal waiver options.

• reAlpha Mortgage – A next-generation mortgage platform that helps buyers close faster, save more, and receive a meaningful portion of the buyer agent’s commission back. NMLS #1743790
• reAlpha – A homebuying platform that helps you earn a meaningful share of the buyer agent’s commission back by bundling services in a smart, streamlined way.

Both platforms integrate digital underwriting and eligibility checks, improving your chances of getting an appraisal waiver fast.

Note: reAlpha Mortgage may partner with other service providers to maximize your benefits, but all recommendations are rooted in compliance-first standards.

Buying your dream home doesn’t have to drain your savings. With reAlpha Mortgage, you can unlock up to 1.5% of your buyer agent’s commission back - real cash that can cover closing costs, inspections, or even that new couch. Here’s how it works:

• 0.5% back when you buy with a reAlpha agent
• 1% when you bundle your mortgage with reAlpha
• 1.5% when you include Title services too

Smart buyers don’t just close. They close with cash back. Ready to see what you qualify for? Start your smarter homebuying journey with reAlpha Mortgage.

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Get pre-approval first, then start exploring homes knowing you can receive up to 1.5% of the home price back at closing.

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