The Quick Read: Sometimes, but only when the repairs are minor. A waiver is an automated offer from the underwriting system, not something you can request. It never erases a safety, soundness, or structural problem. If the system knows about a real defect, expect a traditional appraisal and a repair requirement.
What Does “Appraisal Waiver” Actually Mean Now?
Fannie Mae now calls it “value acceptance.” It is an offer from the underwriting software to accept the value the lender submits, with no appraisal required on eligible loans. On a purchase, that value is the contract price. On a refinance, it is an estimate from the lender or borrower, per Fannie Mae’s value acceptance page.
Refinance savings and break-even estimate
The starting figures are an example value with a balance in proportion and a placeholder for costs. Replace them with yours, and enter the current rate from your statement.
Editable benchmark: 7.32% as of October 22, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $245,000 current balance, a current rate you enter and a remaining term seeded at twenty-five years, closing costs seeded at $5,000 as an editable placeholder (not a fee quote) and rolled into the new loan, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The new rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a refinance quote; a refinance is priced by the lender at lock, and the current rate, the remaining term and the closing costs are figures you enter. The current payment is estimated from the balance, the current rate and the remaining term; the break-even divides the closing costs by the monthly saving and ignores the interest effect of a longer term. On the VA IRRRL the funding fee is added to the loan unless the veteran is exempt. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages; Lendmire is a broker, never the lender.
Freddie Mac has its own version, called ACE (automated collateral evaluation). Its inspection-based version is ACE+ PDR.
The name change matters. "Waiver" suggested an appraisal was the default and you were skipping it. Value acceptance says the system simply decided it had enough data.
Here is the part most borrowers miss. A waiver skips the valuation step. It does not skip the property's eligibility rules. The home still has to be safe, sound, and structurally secure when the loan is sold to the agency.
Can You Ask Your Lender for a Waiver?
No. The underwriting system decides, using its database of past appraisals and its own analytics. Neither you nor your loan officer can force an offer.
Several things can take the offer off the table:
- An appraisal already exists. If one was ordered, the waiver is gone.
- Thin data. A property with no usable appraisal history is hard for the system to evaluate.
- Rental income. If the lender uses rent from the home you are financing to qualify you, the Selling Guide requires an appraisal.
- Reason to believe one is warranted. The lender must still order an appraisal if it learns something about the property that calls for one.
That last item is the one that matters for repairs. A known leak, a failing foundation, or a repair list in the purchase contract is exactly the kind of information that can end a waiver.
Lendmire arranges conventional loan programs through wholesale lenders. In the files it sees, borrowers who plan around a waiver without a backup usually get surprised. Plan for an appraisal. Treat a waiver as a bonus.
How Does Condition Fit Into a Waiver?
Condition still matters, with or without an appraisal. Fannie Mae rates property condition on a scale from C1 to C6. In plain terms, C1 is essentially new, and C6 is badly deteriorated.
According to Fannie Mae's announcement on the terminology change, C6 properties are not eligible for sale to the agency. Deficiencies that affect safety, soundness, or structural integrity must be repaired to at least C5 before sale. So a C6 home is not permanently unfinanceable. It needs fixing first.
Minor wear is a different story. Think worn carpet, a cracked window pane, a missing handrail, or a slow drip under a sink. These are deferred maintenance. They can usually be reported as-is, and the lender decides whether anything more is needed.
The dividing line is simple:
- Cosmetic or minor items: can often stay as they are.
- Anything affecting safety, soundness, or structure: must be fixed before the loan is sold.
Does a Waiver Mean Nobody Inspects the House?
Not always. Plain value acceptance means no inspection of any kind. But two variants put a trained person in your home.
Fannie Mae's "value acceptance plus property data" sends a data collector to record interior and exterior details. Freddie Mac's ACE+ PDR works the same way. Per Fannie Mae's Selling Guide, the collector must flag safety, soundness, or structural issues and significant unfinished construction or renovation. The lender must then warrant that the property has none of them.
So a waiver can come with a walk-through. The collector is not an appraiser, but the report goes to the lender, and the lender decides what to do with it.
Freddie Mac says the seller must review the data report and photos and decide for itself whether repairs are needed. The reports can be reused if they meet its independence rules and are dated within 12 months of the note date. A condo still requires a project review. Details are in Freddie Mac's ACE+ PDR guidance.
Which Loans Are Ruled Out Entirely?
Value acceptance is considered for one-unit properties, including condos, on principal residences and second homes. That is a narrow lane. Several loan types are excluded:
- Two- to four-unit properties
- Co-ops and manufactured homes
- Proposed construction and construction-to-permanent loans
- Fannie Mae's renovation programs
- Leasehold properties
- Texas cash-out loans on the homestead
- Manually underwritten loans
A buyer planning a renovation loan will get a traditional appraisal. That is by design, because the appraiser has to value the home as improved.
Occupancy also sets the leverage. Across the programs Lendmire places, a one-unit principal residence is the strongest-leverage case. Second homes and rentals carry lower limits.
What Happens on a Refinance?
A refinance works like a purchase, with one difference: there is no contract price, so the value is an estimate. If the home needs repairs, the same rules apply. Safety, soundness, and structural items must be resolved before the loan is sold.
The leverage you want also shapes your odds. A rate-and-term refinance (the limited cash-out kind) on a one-unit principal residence can reach 95% LTV with an appraisal. LTV, or loan-to-value, is the loan balance divided by the home's value. A standard conventional cash-out on a one-unit principal residence caps at 80% LTV, with the first mortgage at least 12 months old. Mortgage insurance applies above 80%. It can be cancelled at your request once you reach 80% of the original value, and the servicer must end it automatically at 78%.
Fannie Mae's published limits for value acceptance on cash-out loans are generally tighter than what a full appraisal supports. Check the value acceptance page for the current limits, since they change with each underwriting-system release.
Hold on to one more point if you own the home free and clear and want cash for repairs. A waiver does not make cash-out easier on a damaged home. Lendmire's piece How an Appraisal Changes What a Conventional Cash-Out Refinance Lends walks through the appraisal's role.
Defect-by-Defect: What Usually Happens
This table is a rough map, not a ruling. The lender's judgment and the full file decide the outcome, subject to lender guidelines.
| Defect type | Waiver still possible? | Likely requirement |
|---|---|---|
| Worn carpet, scuffed paint | Often yes | None, or reported as-is |
| Cracked window glass, missing handrail | Often yes if minor | Lender discretion |
| Active roof leak | Unlikely | Repair plus proof of completion |
| Failed furnace, no heat | Unlikely | Repair before sale |
| Foundation or structural damage | No | Appraisal; repair first |
| Unfinished renovation | No | Completion proven; renovation loan |
Four Quick Scenarios
These are hypothetical, with no dollar figures.
Cosmetic only. A buyer is purchasing a one-unit home with dated floors and chipped paint. The system offers value acceptance. The lender may close as-is. Fallback: a normal appraisal that notes the wear.
Aging roof. The seller's disclosure mentions a roof near the end of its life, but nothing is leaking. This is a gray area. If the lender treats it as a known concern, it can order an appraisal. If the roof is leaking or damaged, expect a repair requirement. Fallback: the seller fixes it, or the buyer negotiates a credit.
Safety defect. An inspection finds exposed wiring and a broken stair rail. The lender now has additional information. A waiver is unlikely to survive, and the repairs must be done and documented before the loan is sold. Fallback: appraisal "subject to" repairs.
Structural issue. The inspection shows a cracked foundation with movement. Count on a full appraisal and a hard stop until the problem is fixed and documented. Fallback: renegotiate, walk away, or consider a renovation loan.
How Is a Repair Proven Finished?
When repairs are required, the lender must show they were completed. The method depends on whether an appraisal exists.
With an appraisal, the appraiser can complete a Form 1004D, which is the appraiser's completion report. Without an appraisal, that form is not available. Per Fannie Mae's property valuation FAQs, the lender obtains a signed borrower attestation letter instead. The letter must certify the repair was satisfactorily completed and carry your date and signature. Lenders often ask for invoices or photos too.
A waiver can lower costs up front, but it may shift repair work onto you. If the collector flags something, you still fix it and document it before closing.
The same FAQ says value acceptance can be used when a purchase contract calls for repairs, if those repairs are minor and don't affect safety or soundness. Read the full answer there, because it turns on the details.
Waiver, Appraisal, or Renovation Loan?
| Route | Best for | Main tradeoff |
|---|---|---|
| Value acceptance | Move-in-ready, minor wear | Not guaranteed; offer can vanish |
| Appraisal with repair conditions | Fixable safety or soundness items | Repairs done before closing |
| Renovation loan | Larger projects | Appraisal required; more steps |
| Buy conventional, fix later | Cosmetic work you can fund separately | You carry the repair cost |
For a bigger project on a home you already own, the FHA side offers its own repair-financing paths. Lendmire compares them in its article FHA Cash-Out vs FHA 203k for a Paid-Off Home Needing Repairs.
One honest tradeoff: with no appraisal, you have no independent look at condition. Your own home inspection does the heavy lifting. Skip it and you carry the risk alone.
What If There Is No Waiver? Your Appraisal Rights
If the file goes to an appraisal, you are entitled to a copy. The CFPB's valuations rule factsheet says lenders must give applicants free copies of appraisals and other written valuations on first-lien home loans. They must send written notice of that right shortly after application. If no valuation was developed, there is nothing to hand over, and the lender need not create one.
Read the appraisal when it arrives. Its condition notes tell you what the lender will likely require.
Common Myths
- "My strong credit gets me a waiver." The offer is driven by property and collateral data, not borrower strength.
- "A waiver means condition rules don't apply." The home still has to meet eligibility rules when sold.
- "Any needed repair kills the loan." Minor items can be reported as-is. Safety, soundness, and structure are the hard stops.
- "A C6 home can't be financed." It can, once deficiencies are repaired to at least C5.
- "This works the same for FHA and VA." This article covers conventional loans only.
A Practical Next Step
Before you count on a waiver, get the inspection done, read the seller's disclosures, and tell your loan officer about every known defect. Disclosure keeps the file clean. Hiding a repair does not make the system blind, and it can cost you the loan.
If you are weighing a refinance and want the break-even run on your own numbers, Lendmire can help you compare the programs on the same home. Every figure here is subject to lender guidelines and full file review, and nothing is a commitment to lend.
Key Terms Defined
Value acceptance: An automated offer to accept the submitted value with no appraisal, on eligible loans only.
ACE and ACE+ PDR: Freddie Mac's automated valuation offer, and its version that adds an on-site property data report.
Property data collector: A trained person who visits the home and records its details and any safety or structural concerns. A collector is not an appraiser.
Form 1004D: The appraiser's report confirming repairs were finished.
Attestation letter: A signed statement from you that a repair was completed satisfactorily.
Condition rating (C1 to C6): The scale for a home's physical state. C6 homes must be repaired before sale to the agency.
Frequently Asked Questions
Can I use a waiver if my purchase contract lists repairs?
Only if the repairs are minor and don't affect safety or soundness. Value acceptance can be used in that case. The lender must still document completion before the loan is sold, and it can order an appraisal if it believes one is warranted.
Does a waiver replace a home inspection?
No. A waiver replaces the appraisal, not your inspection. Without an appraisal, your inspection is the main independent check on the home's condition. Skipping it leaves you exposed to problems no one has looked for.
Can a condo get a waiver if it needs repairs?
Possibly, but the lender still must review the condo project. Critical repairs or large special assessments can lead to an appraisal to judge the effect on marketability. Freddie Mac also requires a project review under ACE+ PDR.
What if damage happens after a waiver offer?
An existing offer can still be used after a disaster. The lender must take reasonable steps to confirm the property's condition. Damage that affects safety, soundness, or structure must be repaired before the loan is delivered.
Will a waiver save me money?
It may reduce costs and processing steps, according to Fannie Mae's own materials, but no source gives a typical per-borrower saving. Repairs flagged along the way still cost you. Weigh the total picture, not only the appraisal fee.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending partners, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Fannie Mae Single-Family: Value Acceptance
2. Fannie Mae's announcement on the terminology change
3. Fannie Mae Selling Guide B4-1.4-11: Value Acceptance + Property Data
4. Freddie Mac Guide ACE+ PDR FAQ (Section 5602.4)
5. Fannie Mae FAQs: Property Valuation
6. CFPB ECOA Valuations Rule coverage factsheet
This article is part of Lendmire’s conventional loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get Cash Out on a Refinance With a Conventional Loan? · How to Pull Cash Out of a Home With a Conventional Cash-Out Refinance · Can a First-Time Buyer Get a Conventional Loan With No Income Limit?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.