That’s right guys, you might be able to purchase a house without having to get a mandatory appraisal. Fannie Mae just announced on Tuesday 9-26-2017 that they will now allow property inspection waivers on purchases. This is GREAT news for home buyers!
Moving forward with mortgages
The mortgage industry is moving lightening speed in the direction that everyone who works at NewCastle Home Loans is striving for. It used to mean that when you obtained mortgage financing, the appraisal was mandatory for determining the value of the subject property. There are exceptions for the FHA streamlined refinance, or the high LTV HARP refinance, depending on the value of the property that is populated on the automated underwriting findings.
To learn more about appraisals click here.
Gone are the days of the mighty appraisal.
Since 2009, Fannie Mae (FNMA) has been collecting information from the appraisals that were being conducted and submitted into the UCDP, which stands for Uniform Collateral Data Portal. FNMA is using this information and releasing automatic underwriting findings to include the mortgage transaction to be completed without an appraisal.
Property Inspection Waivers (PIW) have been making their way onto the findings ever since December 2016, but only in refinance transactions. This was because of the refi boom (when everyone was refinancing).
Now that the refinance transactions have slowed down, FNMA is allowing PIW's on purchase transactions. This will not only speed the origination process up it will also drive closing costs down, streamlining the mortgage process. This will make buying a home even easier!
- Any mortgage transactions that includes a gift of equity will be excluded from the PIW.
- Any mortgage transactions for investment properties that will use rental income for qualifying purposes will still need an appraisal.
We will always review your underwriting findings to ensure we are not ordering any unnecessary appraisals. We want you to save money and time. Schedule a 15 minute phone call with Jessica.
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