Menu
  • Instant Rate Quotes
  • Calculators
    • 15 vs 30 Year Mortgages Compare popular fixed rate programs
    • Mortgage Loan Calculator Compare your monthly payments
    • Rent vs Buy Housing Options and Costs
    • Adjustable Rate Mortgage Calculator Costs for Adjustable Products
    • Mortgage APR Calculator APR calculators for all Products
    • ARM & Interest Only ARM vs Fixed Rate Mortgage Compare Popular Mortgage Products
    • Fixed Rate Mortgage vs Interest Only Mortgage Cash Flow Mortgage Options
    • Fixed Rate Mortgage vs Libor ARM Long term vs Short Term Lending Option
    • APR Calculator For Adjustable Rate Mortgages Accurate APR’s for Adjustable Rate Products
    • Mortgage Tax Savings Calculator Calculate Tax Savings on Mortgage Interest
  • Products
    • Mortgage Products Learn which mortgage product fits your financial plan
    • Conforming Fixed Rate Loans Fixed Rate Mortgages to $510,400
    • Conforming Adjustable Rate Loans Popular Short-Term Lending Options
    • Super Conforming Fixed Rate Loans Fixed Rate Mortgages to $765,600
    • Super Conforming Adjustable Rate Loans Adjustable Rate Mortgages to $765,600
    • Jumbo Fixed Rate Loans Fixed Rate Mortgages to $5,000,000
    • Jumbo Adjustable Rate Loans Adjustable Rate Mortgages to $5,000,000
    • Fannie Mae HomeReady® Loans Fannie Mae’s Flagship Home Affordability product
    • Freddie Mac Home Possible® Loans Freddie Mac’s Flexible Home Financing Options
    • Agency Multiple Property Loans Mortgages for owners of 7-10 Financed Properties
    • Federal Housing Administration Loans Mortgage insurance on loans by FHA-approved lender
    • Veterans Administration Loans Mortgages for Veterans with Favorable Terms
  • Blog
  • About
    • About Us Why Choose Empire of America
    • FAQs Frequently Asked Questions
    • Resources Relevant Articles on Mortgage Lending
    • Licensing & Disclosures Lender Licensing and Notices
    • Contact Us Speak with an EOAC Mortgage Banker
  • Apply Now
  • Call 1-866-411-3621
Call 1-866-411-3621

 

  • Home
  • Blog

Appraisal Not Required? Maybe Not! Find Out Before You Place an Offer to Buy a Home!

Created On April 7, 2022 - Updated On: April 19th, 2022 by Stephanie Jones


You can always remove an appraisal contingency from your purchase offer, but did you know that the appraisal itself may not be a lender requirement for mortgage financing (it’s called a property appraisal inspection waiver or PIW)? This can be determined upfront through our pre-approval process well before you put in your offer to purchase. This also means the escrow period can be shorter, as the appraisal takes up considerable processing time – closing in just a couple weeks becomes doable (or less). This shorter escrow period and no appraisal contingency could put your offer to the top of the list!

How is PIW achieved?

A property appraisal inspection waiver is issued only in conventional conforming financing. So, loan amounts $970,800 or less (depending on your county – you can check county loan limits here). Fannie Mae & Freddie Mac are the entities that issue the waiver, it is determined by their internal automated underwriting system (essentially a computer program), that crunches the numbers on that loan file, including debt to income ratios, value, down payment amount, loan program, rate, and most importantly the property address. If either Fannie or Freddie determine the value of the home entered is acceptable, they will state no appraisal is needed to verify the value. If they are confident in that scenario to waive the requirement, they will issue a PIW, and it then becomes possible for you to waive your appraisal contingency without a concern on the appraised value negatively effecting the transaction!

PIW’s happen quite frequently in the recent past, mostly on refinances, but you would be surprised how many we have seen on purchase transactions too. The more the down payment, the higher likelihood an appraisal waiver will come up on a given property (more equity = less risk). Same goes with other loan parameters: higher credit score, lower debt to income ratios, all of these play a part in whether a property appraisal inspection waiver is offered. Now, we won’t ever know exactly why it was not available (the system does not reveal that), it is the specific combination of factors that determine if the waiver is available.

Note, PIW, as it is not available under these circumstances:

  • Home value over $1,000,000.
  • 2-4 unit properties
  • Manufactured homes
  • Rental income from the subject property being used to qualify (investment transaction)
  • An appraisal has already been obtained, establishing value
  • Non-arm’s length transaction (between friends and family)
Stephanie Jones

Login Submit
0 Comments

No Comment.

Popular Articles

  • Appraisal Not Required? Maybe Not! Find Out Before You Place an Offer to Buy a Home!
  • Best Practices to Improve Your Credit Score & Interest Rate Pricing
  • Can I Qualify with Self-Employment?
  • Closing Cost Breakdown
  • Empire of America (EOAC) – 40 Years of Residential Real Estate Lending
  • HELOC Versus Cash-Out Refinance

Speak with an Empire of America Mortgage Banker Today

For more insight into the most relevant solutions for you, ask one of Empire’s Mortgage Bankers about incorporating your home financing strategy into your overall wealth management plan.

Call 866-411-3621
Empire of America

4500 Park Granada, Suite 202
Calabasas, CA 91302
O: 1-866-411-3621
E: consultants@empireofamerica.com

Mon-Fri 9:00AM-5:00PM PST
Sat 11:00AM-5:00PM PST

Company
  • About
  • Instant Rate Quotes
  • Apply Now
  • FAQs
  • Resources
  • Contact Us
Calculators
  • 15 vs 30 Year Mortgages
  • Mortgage Loan Calculator
  • Rent vs Buy
  • Adjustable Rate Mortgage Calculator
  • Mortgage APR Calculator
  • ARM & Interest Only ARM vs Fixed Rate Mortgage
  • Fixed Rate Mortgage vs Interest Only Mortgage
  • Fixed Rate Mortgage vs Libor ARM
  • APR Calculator For Adjustable Rate Mortgages
  • Mortgage Tax Savings Calculator
Products
  • Conforming Fixed Rate Loans
  • Conforming ARM Loans
  • Super Conforming Fixed Rate Loans
  • Super Conforming ARM Loans
  • Jumbo Fixed Rate Loans
  • Jumbo ARM Loans
  • Fannie Mae HomeReady® Loans
  • Freddie Mac Home Possible® Loans
  • Multiple Property Loans
  • Federal Housing Administration Loans
  • Veterans Administration Loans
Helpful Links
  • Licensing & Disclosures
  • Privacy Policy
  • Terms and Conditions
Follow Us

Empire of America is a direct lender. All rights reserved. NMLS #1146941. © 2021 Empire of America Corporation | 5525 Oakdale Avenue, Suite 150, Los Angeles CA 91364.
Loans made or arranged pursuant to a CADRE License #01898298. Not available in all states.