Fannie Mae Joins Freddie Mac in allowing Appraisal Free Purchase Mortgages
Freddie Mac announced two weeks ago that beginning September 1, 2017 they will allow certain purchase mortgages to not require an appraisal to complete the transaction. One week later, Fannie Mae followed suit in allowing appraisal free purchase mortgages on certain transactions beginning immediately. Transactions are limited to loans that have LTV ratios (loan to value) of 80% or less and most transactions with a down payment of 20% or more are still expected to require an appraisal. Transactions that do not require an appraisal are given a PIW (Property Inspection Waiver) which are granted by valuing the property through algorithms and databases of existing data compiled by millions of existing appraisals. The percentage of homes that will be granted a PIW is still up in the air to the general lending community and more information will become available over the upcoming months.
