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Do I have to get an appraisal for home if I am paying a 70% down payment?

by pcoveyr634 from Charlotte, North Carolina. Aug 1st 2017 Reply

William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,726 contributions

More info needed.. But the short answer is Possibly.. Under the newest underwriting guidelines for conventional loans, if there are strong compensating factors (like putting 70% down), certain files that are run through the Automated Underwriting System (AUS) will qualify for an appraisal waiver. Regardless of what the AUS finding are, certain lenders will not do a loan without an appraisal.. So when you apply, ask your loan officer if they allow appraisal waivers per AUS findings.. if the answer is yes.. then if the AUS does issue an appraisal waiver, you just saved about $600 bucks. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Aug 1st 2017
Chris Neuswanger (mtnmortgageguy)
#93 ranked lender in Colorado - 92 contributions

I would agree, other than my take isthe short answer is yes, all real estate loans sold to Fannie and Freddie (about 98%) require an appraisal or what is called a inspection waiver, but these days you really do not know until your lender has taken your application and submitted because your property may show up as eligible for a waiver. This means that a database someplace has assigned a valuation to your property that Fannie or Freddie will accept. The databases are growing rapidly and contain data on tens of millions of properties. The long term accuracy of these valuations is yet to be proven, particularly on properties that have been heavily renovated or are unique compared to neighboring properties. Colorado is my market and happy to talk to anyone buying in CO. 970-748-0342

Aug 2nd 2017
John Tam (Xbcpaperguy)
#847 ranked lender in California - 7 contributions

No if it is a private/hard money type of lender and yes if it is an institutional Conventional or Government loan from a bank or non-bank mortgage banking company because the investors need a licensed appraisal company to document the current condition of the property in addition to the property value. The interior of the home could be completely gutted and uninhabitable for all they know and Fannie/ Freddie & FHA/VA requires properties to be in move-in condition before a loan can be funded.

Aug 2nd 2017
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,027 contributions

Probably... But what happens is when lenders run your loan through the appropriate underwriting computer, the computers decide if an appraisal is needed. With a great score, and a great down payment, there is a good possibility you would get a PIW, which stands for property inspection waiver. The ONLY way to know is to run your application through the computers.

Aug 3rd 2017
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