Financing · Fannie Mae B4-1.4-10Appraisal waiver (value acceptance): when a loan needs no appraisal

For some loans, Fannie Mae's automated underwriting (DU) offers value acceptance – formerly called an appraisal waiver – and no appraisal is required. DU generally needs a prior appraisal of the property in Fannie Mae's Collateral Underwriter data; a prior appraisal with an overvaluation flag, or one that could not be scored, is not used. Offers are considered for one-unit properties including condos, principal residences and second homes, certain purchases and refinances, and casefiles with an Approve/Eligible result. They are not available for 2–4 units, co-ops, manufactured homes, proposed construction, renovation loans, leaseholds, Texas 50(a)(6) loans, resale-restricted properties, a price or value of $1,000,000 or more, transactions using a gift of equity, or manually underwritten loans. The lender may still order an appraisal, and must if the law requires it or it uses rental income from the property. The offer can be used only if it is not more than four months old on the note date.