An appraisal waiver is when a lender’s automated underwriting system determines that a traditional appraisal is not required because the property’s value can be supported using existing market data. Instead of sending a licensed appraiser to inspect the home, the lender accepts a data‑driven valuation model.
Fannie Mae’s modern term for an appraisal waiver is Value Acceptance. This is a DU (Desktop Underwriter) automated underwriting finding that allows the lender to deliver the loan without obtaining a traditional appraisal. Value Acceptance is most common on lower‑risk loans: owner‑occupied homes, strong credit scores, stable income, and lower loan‑to‑value ratios. It also depends on the property being located in an area with consistent, reliable sales data. Without local data even a loan with a large down payment and a borrower with the highest scores won’t be able to get a waiver.
For a file that runs through Freddie Mac’s automated underwriting system, the term for the appraisal waiver is ACE (Automated Collateral Evaluation).
The older term for this concept was Property Inspection Waiver (PIW). PIW was Fannie Mae’s original DU finding that allowed eligible loans to close without an appraisal or a physical inspection. Although PIW is no longer used in current Fannie Mae terminology, many loan officers still use it informally when referring to appraisal waivers or Value Acceptance.
If DU does not allow a full waiver but does not require a traditional appraisal either, the lender may receive a Value Acceptance + Property Data result. In this case, a trained data collector visits the home to gather standardized photos, measurements, and condition details. This property data collection provides more information than a waiver but less than a full appraisal, and it can shorten timelines and reduce cost.
Appraisal waiver eligibility has expanded in recent years. Fannie Mae now allows Value Acceptance on some purchase loans with loan‑to‑value ratios higher than the traditional 80 percent threshold, depending on factors such as occupancy, credit profile, and property type. Value Acceptance + Property Data may also be available at higher LTVs when DU determines that additional property information is needed. These expanded LTV ranges make waivers more common on well‑qualified primary and second‑home purchases.
Appraisal waivers are helpful tools for qualifying borrowers and streamlining low‑risk files, but they are not available on all loan types or all properties. They are less common on condos, multi‑unit homes, cash‑out refinances, and properties in areas with limited or inconsistent sales data.