No appraisal, no problem.
Today I cover in-depth, the top 3 ways to refinance a mortgage without an appraisal, and what is the goal of doing it.
Covering:
- Property inspection waiver.
- FHA Streamline.
- VA Interest Rate Reduction Refinance.
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How to Refinance A Mortgage Without An Appraisal
There are 3 ways to completely refinance a mortgage without an appraisal.
Please keep in mind, guidelines are always changing. I’ll do my best to keep this space updated with existing real estate market conditions.
- Property Inspection Waiver | Conventional Mortgage
A Property Inspection Waiver Mortgage is a kind of home loan that is undoubtedly underwritten without an appraisal. It is also known as the Appraisal Waiver Mortgage
For this Appraisal Waiver to be functional, lenders should clearly use the already available data that assess the market value. They should surely not rely on the new appraised value. A lender doesn’t need a home inspection for financing with PIW mortgages. Thus, it will save money and time by skipping the realtor fee, appraisal fee, closing costs – it all adds up! With a PIW Mortgage, a lender can get that house of his dreams without breaking the bank.
The Government Sponsor Organizations including Freddie Mac, Fannie Mae, and GSEs already work on programs in place for appraisal free mortgage loans and refinances to facilitate. This Appraisal Waiver can substantially save both time and money for homebuyers. According to a statement by Freddie Mac, the lenders would surely save around $500 and will shorten the time it takes to get to the closing table by 7 days through this waiver program.
- Streamline without Appraisal | FHA Loan
If I currently have an FHA loan, I’ll look to streamline a refinance into a lower interest rate. I will try to refinance it without an appraisal. On an FHA streamline, I cannot roll in closing costs on the mortgage. So I either need to get a rate that has enough lender credits to cover costs, or I have to pay costs out of pocket.
Other perks to FHA Streamline besides no appraisal:
- Low credit is fine.
- No income verification
An FHA streamline is a wonderful opportunity if I have been on my FHA loan for at least 6 months.
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Interest Rate Reduction Refinance Loan | VA Mortgage
If I have an existing VA-backed home loan and I want to reduce my monthly mortgage payments—or make my payments more stable—an interest rate reduction refinance loan (IRRRL) may be right for me. Refinancing lets me replace my current loan with a new one under various terms.
Other perks to VA IRRRL besides no appraisal:
- I can roll in closing costs
- No income verification
Find out if I’m eligible—and how to apply.
Check your refinance eligibility
If you want to see whether you qualify for an appraisal waiver, you need to apply with a borrower. The initial application takes just some minutes and there’s never any obligation to proceed.
Show me today’s rate (Nov 25th,2021)
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