The Quick Read: Some conventional cash-out refinances skip the appraisal, but the borrower and the lender don’t get to choose that. An automated underwriting system issues a waiver offer only when the file meets strict conditions, and the lender then decides whether to use it. In practice, the lenders that write these loans matter less than how well your file fits the rules.
Key Takeaways
- The waiver is now usually called “value acceptance” or ACE (Freddie Mac). “Property inspection waiver” is the older name.
- Only conventional loans can waive the appraisal on a cash-out. FHA and VA cash-outs cannot.
- The waiver caps leverage at 70% on a primary residence, well below the standard cash-out limit of 80% on a one-unit home.
- A waiver changes only the valuation step. Credit, income, debt ratios and cash-out seasoning still apply.
- You can’t request a waiver. You can choose a broker who runs your scenario early and shops it across several wholesale lenders.
What Is a Property Inspection Waiver on a Cash-Out Refinance?
A property inspection waiver lets a conventional lender accept an automated value estimate in place of an appraiser’s visit. The agencies keep renaming it, so you will see several terms for the same idea.
Cash-out refinance estimate
The starting figures are an example value with a balance and a cash request in proportion. Replace them with yours.
Editable benchmark: 7.24% as of October 29, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a cash-out refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $193,000 current balance, the agency cap on a one-unit principal residence, 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 rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a cash-out refinance quote; a cash-out loan is priced by the lender at lock. The cash available is the loan the program cap allows less the balances paid off, before closing costs, which are not included. The HELOC line is the program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages.
Fannie Mae’s Selling Guide says that for certain loan casefiles, Desktop Underwriter can offer value acceptance, and an appraisal is then not required. Freddie Mac’s version is Automated Collateral Evaluation, or ACE. Both are built into the automated underwriting systems lenders already use.
Here is what the waiver removes. The agency accepts the value the lender submitted and gives the lender relief from enforcement of representations and warranties about property value. That is a narrow change, as the Fannie Mae program page explains. It does not waive underwriting.
A quick map of the valuation paths:
| Valuation path | Allows cash out? | Who decides |
|---|---|---|
| Full appraisal | Yes | Lender orders it |
| Value acceptance / ACE | Yes, conventional only | System offers, lender chooses |
| FHA Streamline / VA IRRRL | No | Program rules |
| FHA or VA cash-out | Yes, with appraisal | Program rules |
Why Does the Search Say “Lenders” When the System Decides?
Because the waiver is not on any lender’s menu. The automated system generates the offer. The lender can act on it or order an appraisal anyway. If an appraisal is obtained for the transaction, the waiver offer can’t be used. A lender also can’t use it when the law requires an appraisal.
So the real differences between lenders sit elsewhere:
- Whether they run your file through automated underwriting early.
- Whether they act on an offer when one appears.
- Whether they add their own overlays on top of agency rules.
- How they handle a file that falls out of waiver range.
That is where a broker earns its place. Across the wholesale programs Lendmire places files with, those habits differ from one lender to the next. Matching your scenario to a lender that handles it well is the practical version of “finding a lender with a waiver.” Lendmire’s cash-out refinance programs page outlines the conventional, FHA, VA and jumbo options a broker can compare for a primary residence.
The best program for your situation depends on your property type, equity, credit profile and goals. No single lender fits everyone.
How Does the Waiver Decision Get Made, Step by Step?
The process runs in a set order, and you control very little of it.
1. You apply. The lender submits the file to Fannie Mae’s or Freddie Mac’s automated system.
2. The lender enters an estimated value. The system works from that estimate and its own data.
3. The system checks the file. It looks at property type, occupancy, leverage, the estimated value and whether the file earns an approve/eligible finding.
4. An offer appears, or it doesn’t. No offer means a standard appraisal.
5. The lender chooses. Even with an offer, a lender may order an appraisal anyway.
6. Normal cash-out underwriting continues. Credit, income, ratios and seasoning all still get reviewed.
Fannie Mae’s guide also puts an age limit on the offer: it must be no more than four months old on the date of the note and the mortgage. Freddie Mac’s rules differ in their details, so a lender should confirm the current terms for your file.
Only step four changes. Everything else looks like any other cash-out refinance.
What Makes a Cash-Out File More Likely to Get an Offer?
Leverage is the biggest factor. Fannie Mae’s program page lists cash-out refinances on principal residences at up to 70% LTV/CLTV, and Freddie Mac’s ACE table in Guide §5602.3 lists the same 70% for a primary-residence cash-out. Compare that with the standard conventional cash-out limit of 80% on a one-unit principal residence. A borrower who needs more than the waiver cap needs a full appraisal. Period. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Other factors:
- Unit count. Fannie Mae excludes two- to four-unit properties, co-ops and manufactured homes. A conventional cash-out on a two- to four-unit primary home normally tops out at 75% LTV and goes through an appraisal.
- Value. Fannie Mae excludes any transaction where the purchase price or estimated value given to the system is $1,000,000 or more.
- Transaction type. Fannie Mae excludes proposed construction loans and properties with resale price restrictions.
- Occupancy. Second homes and investment properties carry lower waiver caps than a primary residence. Occupancy sets leverage, and that is all this page needs to say about them.
- Credit and ratios. The system must return an approve/eligible finding. The wholesale conventional programs generally start at a 620 decision score, and the automated finding governs most files, with a total ratio ceiling of 50%. All of it is subject to lender guidelines and full file review.
- Seasoning. The first mortgage being paid off must generally be at least 12 months old, and a borrower must have been on title for six months, with exceptions such as delayed financing, inheritance and legal awards.
One more point from experience. Freddie Mac stopped offering ACE waivers on cash-out loans for a stretch, replacing them with a property data report collected on site. The agency later resumed offering appraisal waivers on cash-out refinances. Older articles that say Freddie cash-outs can’t get a waiver are out of date.
What Does a Waiver Not Remove?
Underwriting. People assume “no appraisal” means “fewer rules.” It doesn’t.
You still document income and assets. Your credit still gets pulled. Debt-to-income still has to fit. The cash-out transaction rules still apply, including the seasoning on the loan you’re paying off. The waiver relieves the agency’s valuation representations and nothing else.
A related point: no appraiser visit doesn’t mean no valuation document. Under the CFPB’s ECOA valuations rule, applicants are entitled to free copies of appraisals and other written valuations on first-lien dwelling loans, and the factsheet says any internal creditor valuation must be provided when it is a written valuation developed in connection with the application. If no written valuation exists, there is nothing to deliver. Borrowers can be charged for the appraisal itself, but not for the copy.
Why Don’t FHA and VA Follow the Same Path?
Because their appraisal-free options exclude cash out. Mixing them up is a common mistake we see.
The FHA Streamline needs no appraisal on an existing FHA loan, with limited credit review and a net tangible benefit. It can’t return cash to you. The FHA rate-and-term loan with an appraisal reaches 97.75% LTV, but that is a different product. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
The VA IRRRL, for an existing VA loan, needs no VA appraisal and no credit underwriting package, according to the VA’s own IRRRL guidance. It carries a 0.5% funding fee unless the borrower is exempt, and seasoning of the later of 210 days and six payments. It is rate-and-term only.
An FHA or VA cash-out refinance both involve an appraisal. If you hold a government loan and want cash, the choice is usually a conventional cash-out with a possible waiver, or a government cash-out with a full appraisal.
Key Terms Defined
Value acceptance: Fannie Mae’s current name for an appraisal waiver offered by its automated system.
ACE: Freddie Mac’s Automated Collateral Evaluation, its version of the waiver.
LTV/CLTV: The loan (or combined loans) divided by the home’s value, shown as a percentage.
Limited cash-out refinance: A refinance that pays off the old loan and closing costs, with only incidental cash back to you. It is also called rate-and-term.
Seasoning: The minimum time you must have held the loan or the title before you can cash out.
How Do You Pick the Right Lender Match?
You can’t pick a lender by whether it “has” a waiver. Choose by how the lender handles your file. A broker can shop several wholesale lenders, and these are the questions worth putting to any of them:
- Will you run my file through automated underwriting before I commit to anything?
- If an offer appears, do you typically use it, or do you order an appraisal?
- If the offer disappears, what is the fallback?
- Will I receive copies of any written valuation?
- Do you apply overlays on top of agency leverage and credit rules?
The answers matter more than any marketing claim. Lendmire’s role is to arrange these loans through wholesale lenders, and the work is mostly matching: your equity, property type and credit against what each lender writes.
Three Borrower Scenarios
These are illustrative, with no dollar figures, and the outcomes depend on lender guidelines and the full file.
Scenario one: modest equity pull. A homeowner owns a one-unit primary residence with substantial equity and wants a cash-out at about 60% of value. Leverage sits below the 70% waiver cap, the property type is eligible, and the credit profile is clean. This file is a plausible candidate for a waiver offer, though the lender may still order an appraisal.
Scenario two: pulling to the standard limit. Another homeowner wants cash out up to the usual 80% on a one-unit primary home. That is above the waiver cap. The file needs a full appraisal. No lender can change that.
Scenario three: a recent renovation. A homeowner just finished major work and believes the value jumped. An automated estimate may undervalue those improvements, since it can’t see the finished work. This is analysis, not a rule, but a full appraisal could support a higher value and unlock more cash.
When Should You Want the Full Appraisal?
When a higher value helps you. Many borrowers treat the appraisal as a cost to dodge. But the appraisal can add or remove equity from the equation.
Consider the trade-offs plainly:
- The waiver saves the appraisal fee and the appraiser’s visit. Fannie Mae estimates its program has produced savings for borrowers in the billions, though it doesn’t publish a per-loan figure.
- The waiver costs you the chance to document a value above the system’s estimate.
- The waiver limits your leverage to 70% on a primary residence.
If your plan needs more than the waiver cap allows, or you’ve improved the home in ways data can’t see, the full appraisal is the right call. If your equity is deep and your plan sits well under the cap, the waiver is a reasonable thing to have in play.
Cashing out also raises your loan balance, which changes your monthly obligation. And if you’re above 80% LTV on any refinance, mortgage insurance applies. The borrower may request cancellation at 80% of the original value, and the servicer must terminate it automatically at 78%. A cash-out within the waiver cap sits below that line. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
What If You Don’t Get a Waiver Offer?
Nothing is lost except the offer. The deal works to a standard appraisal and the same underwriting continues. A few practical steps help:
- Ask the loan officer whether the file ran through automated underwriting and what it returned.
- Confirm your leverage against the cap before you decide on a loan amount.
- If the estimate came back low, ask whether an appraisal could support a higher value.
- Compare a smaller cash-out amount against the full-appraisal path. A lower request can change the result.
Frequently Asked Questions
Can I request a waiver on my cash-out refinance?
No. The automated system generates the offer, and only the lender can act on it. What you can do is work with a loan officer or broker who runs your scenario early and structures the loan within the waiver’s leverage and property-type limits. Even then, a lender can order an appraisal anyway.
Is a property inspection waiver the same as value acceptance?
Yes, they describe the same idea. “Property inspection waiver” is the older Fannie Mae term, and “value acceptance” is the current one. Freddie Mac’s equivalent is ACE. Lenders and borrowers still use the older phrase, which is why searches often include it.
Can I get a no-appraisal cash-out on an FHA or VA loan?
Not directly. The FHA Streamline and the VA IRRRL skip the appraisal, but neither returns cash. FHA and VA cash-out refinances generally involve an appraisal. If you hold a government loan and want cash with no appraisal, a conventional cash-out with a waiver offer is the only route, and it needs enough equity to sit under the cap.
Does a waiver mean looser credit or income rules?
No. A waiver relieves only the agency’s value representations. The lender still reviews credit, income, assets, debt-to-income and seasoning. The wholesale conventional programs generally start at a 620 decision score, and the automated finding governs most files. All of it is subject to lender guidelines.
Will I still see a valuation report if no appraiser visits?
Possibly. If the lender develops any written valuation in connection with your application, federal rules require that you receive a copy. If none was developed, there’s nothing to deliver. Ask your loan officer which applies to your file.
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches. Program figures are subject to lender guidelines and full file review, and nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
For current guidelines and terms, see Lendmire’s refinance programs page.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps homeowners and home buyers in 16 states with FHA, VA, conventional and jumbo purchase and refinance loans arranged through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and the agency guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Fannie Mae Selling Guide (alt page)
2. Fannie Mae Value Acceptance program page
3. Freddie Mac Guide §5602.3 ACE
4. Freddie Mac Guide Bulletin 2024-1
5. CFPB ECOA Valuations Rule coverage factsheet
This article is part of Lendmire’s cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How a Payoff Sets a No Cash Out Refinance Loan Amount · How to Choose a Cash-Out Refinance Over a Personal Loan · Delayed Financing vs. a Traditional Cash-Out Refinance for a Cash Buyer
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.