WASHINGTON–Some homeowners won’t have to pay or wait for an appraisal on certain refinance loans backed by Fannie Mae.
Instead of requiring an inspection by a human appraiser, the company said it will use its automated valuation model on qualifying loans. Fannie Mae said it already waives property inspections on about 3% of all loan applications that come through its automated underwriting system. Under its new “enhanced property inspection waiver” program, that could rise to 10%, according to Fannie Mae.
Fannie Mae said its no-appraisal offer applies only to refinance loans on single-family homes and condos worth up to $1 million. The loan amount must be less than Fannie Mae’s limits, which vary by region. In addition, the loan-to-value ratio cannot exceed certain limits.