The Quick Read: Sometimes, but only on a conventional loan, and only if the agency’s automated underwriting system offers it on your file. You cannot request it. The waiver offer comes with a low leverage ceiling, so borrowers who want to pull a large share of equity should plan on an appraisal. FHA and VA cash-out loans do not use this path.
- The old name is “Property Inspection Waiver.” Fannie Mae now calls it “value acceptance.”
- Fannie Mae and Freddie Mac make the call through their automated systems.
- On a primary residence, the cash-out ceiling for a waiver is well below the ordinary cash-out maximum.
- An appraisal ordered or uploaded first can cancel the offer.
- A waiver is not an inspection and not an approval.
What Is a Property Inspection Waiver Called Now?
The old name was Property Inspection Waiver, or PIW. Fannie Mae’s appraisal waivers were previously known as Property Inspection Waivers, and the current Selling Guide term is “value acceptance.” Freddie Mac’s version is ACE, short for Automated Collateral Evaluation.
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: 7.18% as of November 5, 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.
Search results still mix the names. An older article may call it a PIW and say cash-out is excluded. Another may say it is allowed. Both can be right for their date. The rules moved, which is why the sections below name the agency and the guide.
Can a Cash-Out Refinance Use Value Acceptance at All?
Yes, on conventional loans, in a narrow band. Fannie Mae’s Selling Guide says the offer can cover certain purchase, limited cash-out, and cash-out refinance transactions. It is not offered on every file. When Desktop Underwriter does not offer it, an appraisal is required.
Here is how the ceilings stack up for waived loans, per the Fannie Mae value acceptance page:
| Transaction | Occupancy | Max LTV/CLTV |
|---|---|---|
| Cash-out | Principal residence | 70% |
| Cash-out | Second home / investment | 60% |
| Limited cash-out | Principal residence / second home | 90% |
| Limited cash-out | Investment property | 75% |
Freddie Mac’s history on this is why older articles contradict each other. Its Bulletin 2022-6 moved cash-out loans from ACE appraisal waivers to ACE+ PDR, a property data report path, in mid-2022. Then Bulletin 2024-1 restored ACE appraisal waivers for cash-out refinances for submissions on or after February 19, 2024. The guide text should be rechecked on the day you apply.
How Much Less Can You Borrow With a Waiver?
Much less than an ordinary cash-out. Across the wholesale programs Lendmire places files with, a conventional cash-out on a one-unit principal residence typically reaches 80% LTV. Two- to four-unit homes, second homes and investment property typically top out at 75%, subject to lender guidelines. A waived cash-out on a primary residence stops at 70%.
Picture a homeowner with a house that has appreciated a lot. Their equity would support an 80% cash-out on a full appraisal. With a waiver, the same loan is capped ten points of value lower. That gap is cash the borrower never sees. If the estimated value used in the waiver file also runs below the true market value, the gap grows. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
So the waiver mainly suits low-leverage requests: a homeowner with large equity who wants a moderate amount of cash. Someone who wants to pull as much equity as the program allows should plan on an appraisal from the start.
Texas homestead cash-outs have their own cap, set by the state constitution at 80% of the home’s value.
Who Decides: You, the Lender, or the System?
The system decides. The lender submits the loan to Desktop Underwriter or Loan Product Advisor, along with a value estimate. The value entered may be based on the lender’s estimate or the borrower’s estimate. The system then returns a finding, and on some files that finding includes the offer.
Three practical points follow.
1. You cannot ask for it. There is no application checkbox. You can ask the loan officer whether the file is a candidate, and you can decline an offer.
2. The lender can still order an appraisal. An offer is an option for the lender, not a requirement. Some lenders choose an appraisal anyway.
3. The offer can disappear. If the loan changes after the system runs, such as a higher amount, a different occupancy or a new property detail, the offer can be lost.
What Kills the Offer Before It Starts?
Ordering an appraisal first can undo the offer before it exists. The lender may not exercise a value acceptance offer if an appraisal is obtained for the transaction. Its FAQ adds that DU will not offer value acceptance when an appraisal was uploaded to UCDP within the prior 120 days from any lender.
That second rule catches borrowers who shopped lenders. If another lender’s appraisal went through the system in the last 120 days, your file may not get an offer even though you never used that appraisal. Tell your loan officer about any recent appraisal on the property.
Prior appraisal data matters in another way. DU uses information from the prior appraisal to decide eligibility. If that appraisal carried a Collateral Underwriter overvaluation flag, or could not be scored, the system will not offer value acceptance.
Other file factors that move the outcome:
- Leverage, with cash-out held to the ceilings above
- Occupancy: second homes and investment property get lower ceilings
- Property type: one-unit homes, including condominiums, are considered
- Transaction type and the underwriting finding itself
Two- to four-unit homes are not among the property types considered, so plan on an appraisal for them. Certain state-law home-equity structures, non-arm’s-length deals and some disaster-area files can also be ineligible. Check the current guide on those.
Three Outcomes, Not Two
Borrowers hear “waiver or appraisal.” There are really three paths.
1. Value acceptance with no visit. Nobody gives an opinion of value or walks the house. The lender’s value is accepted.
2. Value acceptance plus property data. An option that requires interior and exterior property data collection before the note date. A trained third party collects the data and does not form an opinion of value. Freddie Mac’s counterpart is ACE+ PDR. This path fits files where the agency wants a current view of condition and eligibility.
3. A full appraisal. An appraiser inspects and gives an opinion of value. This is the default whenever no offer is made.
If the first path is lost after data collection because the loan changed, the lender may in some cases hand the data to an appraiser for a hybrid appraisal.
What the Waiver Does Not Remove
The waiver replaces one step: the valuation. Everything else on a cash-out refinance still applies.
- Credit, income, reserves and ratios are underwritten as usual. Across the wholesale conventional programs, a decision score starts at 620, the automated finding governs most files, and the total ratio ceiling is 50%, all subject to lender guidelines.
- Seasoning still applies. The mortgage being paid off must typically be at least 12 months old, and the borrower on title for 6 months, with limited exceptions.
- Title work and the closing process are unchanged.
A waiver also does not vouch for the number. Fannie Mae does not warrant that the lender’s estimate is the actual value. And plain value acceptance is not a condition check. The lender gets relief on condition representations, but the borrower gets no inspection. If the roof is failing, the waiver will not tell you.
One more consumer point. Federal rules give borrowers a right to a free copy of any valuation the lender uses. The CFPB’s consumer summary of the ECOA valuations rule says the lender must give you a free copy of any valuation, such as an appraisal, AVM report or broker price opinion. Ask what valuation product, if any, was used on your file.
FHA and VA: No “Cash-Out With a Waiver”
Government programs do not offer a no-appraisal cash-out. The streamlines skip the appraisal precisely because they do not allow cash back.
- VA IRRRL. VA says no appraisal or credit underwriting package is required, and that you may not receive any cash from the loan proceeds.
A VA or FHA cash-out is a different loan. It is generally treated as needing an appraisal, and an individual lender can add its own requirements. A homeowner with an FHA or VA loan who wants cash has three options: a conventional cash-out if the equity and credit support it, a full-appraisal government cash-out, or leaving the loan alone and using a separate product.
Key Terms Defined
Value acceptance: Fannie Mae’s current term for an offer that lets the lender skip the appraisal on an eligible loan.
Property Inspection Waiver (PIW): the older name for the same idea.
ACE: Freddie Mac’s Automated Collateral Evaluation, its appraisal-waiver offer.
LTV/CLTV: the loan, or combined loans, as a percentage of the home’s value.
Limited cash-out refinance: a refinance that pays off the existing loan and costs with only small incidental cash back. Also called rate-and-term.
Property data collection: a trained third party records interior and exterior details without giving an opinion of value.
Waiver or Appraisal: How to Decide
A waiver can save the appraisal fee. Fannie Mae reports $3 billion in estimated borrower savings since 2018 across its appraisal alternatives. That is the agency’s own estimate, not a promise for any one loan. A waiver also removes the appraiser appointment and the risk of a low value shrinking your cash-out.
The costs are the lower ceiling, the model’s possibly conservative value, and no inspection. Use this as a planning rule:
- Need a moderate amount of cash and own substantial equity: a waiver is plausible. Keep leverage at or under 70% on a primary residence.
- Need the most cash the program allows: plan on an appraisal. The waiver ceiling is lower than the full cash-out ceiling.
- Home has appreciated and you want it counted: an appraisal can prove a higher value than a model will.
- Recent appraisal exists, from any lender: ask before anything else. It may cancel the offer.
Cash-out also raises the loan balance and the monthly payment. That matters regardless of how the value is set.
Questions to put to a loan officer before the file goes in:
1. Will you run the file through the automated system before ordering anything?
2. Is my loan amount low enough for a waiver offer?
3. If no offer comes, what happens next?
4. What valuation product did you use, and can I get a copy?
For program details on leverage and seasoning, see Lendmire’s cash-out refinance programs page.
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. Lendmire is a mortgage broker, so lender guidelines, full file review and approval decide every outcome.
Frequently Asked Questions
Can I request an appraisal waiver on my cash-out refinance?
No. It is an automated output from Desktop Underwriter or Loan Product Advisor. You can ask your loan officer whether the file looks like a candidate, and you can decline an offer if you would rather have an appraisal.
If I get a waiver offer, am I approved?
No. The offer only covers the valuation step. Credit, income, reserves, ratios, title and seasoning are still reviewed, and the lender can still order an appraisal instead of using the offer.
Will a second lender get the same result?
Not necessarily. An appraisal uploaded within the prior 120 days from any lender can block an offer, and each lender’s submission and file data differ. Tell every lender about any recent appraisal.
Do FHA or VA cash-out refinances allow this?
No. The FHA Streamline and VA IRRRL skip the appraisal but permit no cash back. A cash-out under those programs is a separate loan and is generally appraised.
Do I still get a copy of any valuation?
Yes, if the lender used one. The CFPB’s summary says the lender must give you a free copy of any valuation, including an AVM report or appraisal. Ask what, if anything, was used on your file.
For your own numbers, request a scenario review with Lendmire.
For current guidelines and terms, see Lendmire’s refinance programs page.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges FHA, VA, conventional and jumbo home purchase and refinance financing in 16 states through wholesale lenders. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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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. fhfaoig.gov
2. Fannie Mae Selling Guide B4-1.4-10, Value Acceptance
3. Fannie Mae Value Acceptance page
4. Freddie Mac Bulletin 2022-6
5. Freddie Mac Bulletin 2024-1
6. The value entered may be based on the lender’s estimate or the borrower’s estimate
8. Fannie Mae Selling Guide B4-1.4-11 Value Acceptance + Property Data
9. Fannie Mae Value Acceptance + Property Data fact sheet
10. Fannie Mae Selling Guide PDF (Dec 2023)
11. CFPB: What the ECOA valuations rule means for consumers
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 Cash-Out Refinance Appraisal Sets Your Loan Amount · Best Cash-Out Refinance Program to Buy a Rental Property · How Much Below-Grade Space a Cash-Out Refinance Appraisal Counts
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- 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.