Whether you’re refinancing or purchasing a home, it may be possible to do so without an appraisal.
Maybe not.
The Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) both use a range of options that substitute for a traditional appraisal when establishing a property’s value.
Here are some of the newer appraisal substitutes currently offered through FNMA in its underwriting determinations:
Value acceptance
Consumers who are buying homes or refinancing existing mortgage loans may be eligible for an automated appraisal alternative, otherwise known as an automated valuation, value acceptance, or what lenders refer to as an “appraisal waiver.”
This option is possible when the value of a property can be readily accepted through years of property data sales. Properties with recent model-match sales comps are more likely to receive a value acceptance through automated underwriting programs. Because loan risk is a factor, a large down payment resulting in a low loan-to-value helps as well.
Value acceptance plus Property data collection (PDC)
Data is collected by trained and vetted third party professionals who provide no opinion of value — just floor plans, data and photos. Data collectors are trained and have had a background check, however they are not appraisers.
Hybrid appraisal
Property data is collected by a third party and passed to an appraiser, who does not make a personal visit to the property. This option when allowed, can save the borrower money.
Desktop appraisal
An appraiser completes an appraisal without physically visiting the property using data from various sources. A desktop appraisal is typically less expensive and faster than a traditional appraisal.
Traditional appraisal
An appraiser collects all property data and visits the property to render an opinion of a property’s value. This works best with complex property types when there is not a lot of public information on a property or limited comparable sales.
A regular appraisal in California will cost a borrower at least $500, but much more for investment properties, duplexes, rural homes, manufactured homes, or very large custom properties.
Important
All United States government sponsored home loans — including FHA, USDA, and VA loans — will always need a traditional appraisal.
Faster and cheaper evaluations
Having developed so many options to value properties has resulted in streamlined processes, faster valuations and closings and has saved borrowers money on their home purchases.
Remember that borrowers ALWAYS have the right to pay for and obtain an appraisal (if they choose) when purchasing a property regardless of what underwriting determination comes up.
Page revised: June 12, 2026 at 11:54:16 AM PDT
