Appraisal Waivers 2026: When DU and LPA Eliminate the Appraisal Entirely

Appraisal waivers eliminate the requirement for a traditional appraisal on qualifying conventional transactions. When DU or LPA offers a waiver, the lender accepts the GSE's data-model estimate of value rather than an appraiser's opinion. Waivers reduce borrower cost and closing time but are not available on every loan or property type.

Fannie Mae and Freddie Mac Waiver Programs

Fannie Mae calls its waiver program Value Acceptance (formerly Property Inspection Waiver or PIW). Freddie Mac calls it Automated Collateral Evaluation (ACE). Both work through AUS: if the system has sufficient comparable data from the GSE's proprietary database for the subject property address, and the loan meets eligibility criteria, the waiver is offered as a finding on the AUS results.

Eligibility Requirements

• ✦Sufficient historical data for the specific property address in the GSE's collateral database
• ✦Primary residence or second home (investment property eligibility is limited and scenario-specific)
• ✦Purchase loans and rate/term refinances are eligible; cash-out refinance eligibility is limited
• ✦LTV within AUS-accepted range: typically 80% or below for purchases; up to 90% for rate/term refinance in some scenarios
• ✦Not available for manufactured homes, properties with limited comparable data, or condos not on the approved list

What a Waiver Means for the Loan

A waiver does not mean the property has no value representation. The lender still represents the value to the GSE, and the loan file notes the value accepted by the AUS system. If the transaction later reveals a material value discrepancy, the lender bears repurchase risk. However, GSE contracts provide protection when the waiver was properly offered and accepted through AUS.

When to Accept vs Decline

Accept the waiver when the transaction is straightforward and the borrower benefits from cost and time savings. Decline when the borrower has concerns about value, the property has known issues, or the seller is resistant to negotiating a price reduction if value comes in lower. Declining the waiver has no negative impact on the loan; the process simply continues with a standard appraisal.