Effective 12/10/16, Fannie Mae’s underwriting engine is issuing out Property Inspection Waivers (PIWs) on refinances, allowing homeowners to refinance without requiring an appraisal report. This will help expedite the closing timeframe, and reduce the cost of the refi. All great news! Prior to this date, I rarely received a PIW in Fannie Mae’s findings. In addition, there used to be a $75 fee for the PIW, but this is also now eliminated.
Eligible refinance transactions that may expect to receive a Property Inspection Waiver will satisfy the following:
- 1-unit properties (single family, condo, PUD)
- Primary home, second home, and investment properties
- Limited cash-out refinance transactions up to a 90% LTV/CLTV for primary and second homes; up to 75% LTV/CLTV for investment properties
- Cash-out refinances up to a 70% LTV/CLTV for primary residences; up to 60% LTV/CLTV for second homes and investment properties
- Loan must receive an “Approve/Eligible” recommendation
Check out the FAQs here.