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59.3 percent.
My team received appraisal waivers on 59.3 percent of eligible purchase transactions in 2021. An eligible transaction is:
- A conventional loan. We’ll never get appraisal waivers on government loans.
- A primary residence, second home, OR an investment property where we don't need rental income to qualify.
- The borrower has to be putting at least 20% down.
- And they must be buying a single family, stick built home or a condo (no multi-unit properties, no manufactured homes, and no homes on leased land).
- In addition, both a purchase price and an estimated value of less than $1M.
You may hear that getting an appraisal waiver is just a lucky break. And it is true that the automated underwriting system - or the computer - makes the decision. If the computer doesn't have a reasonable estimate of value in its little computer brain, there's nothing I can do to change its mind.
That being said, there are many strategies for structuring the data that I put into the computer to maximize my chances of getting an appraisal waiver.
Don't forget to let us know when your pre-approved buyer is ready to make an offer. We'll run the specifics through that little computer brain before you submit your offer. If we do get that appraisal waiver, you can go ahead and waive your appraisal contingency and let the seller know we can close very quickly - in most cases, two to three weeks.
Think you can't compete with cash? Think again.
My name is Emily Caryl Ingram. I lead a team of Mortgage Loan Specialists at New American Funding in Port Townsend, WA.