🏡 What is an appraisal waiver with Fannie Mae and Freddie Mac?
When you’re buying a home with a loan backed by Fannie Mae or Freddie Mac, an appraisal waiver means the lender may not require a traditional appraisal.
Instead of sending an appraiser to the house, the lender uses trusted data, like recent home sales and market trends, to confirm the home’s value. If the data supports the price, the appraisal step is skipped.
This is a decision made by the lender, not something the buyer has to agree to.
✨ Why this helps in a multiple-offer situation.
In a competitive market, sellers want deals that feel secure and smooth. An appraisal waiver can help because:
✔️ No risk of a low appraisal
Without an appraisal, there’s no chance the value comes in lower than the purchase price and causes delays or renegotiation.
✔️ Fewer hurdles before closing
One less step in the process makes the transaction feel cleaner and more reliable to the seller.
✔️ Faster timeline
Skipping the appraisal can help the deal move forward more quickly.
✔️ No extra money required from the buyer.
This is important: a lender appraisal waiver does not mean the buyer has to bring more cash to closing.
⚠️ One important clarification
This is different from waiving the appraisal contingency in the purchase and sale contract.
• A lender appraisal waiver = lender is comfortable with the value.
• A contract appraisal waiver = buyer takes on financial risk.
They are not the same.
💡 Bottom line for buyers,
A Fannie Mae or Freddie Mac appraisal waiver can make your offer more attractive to a seller without increasing your risk, which is especially helpful when competing against other buyers.
Understanding these details can give you confidence and clarity when making an offer. It’s always recommended to consult with your mortgage professional about these options when working with a Realtor to draft an offer.
Mark Montross,
Catamount Realty Group
85 Prim Rd., Suite 202
Colchester, VT 05446
802–825–1353
[email protected]