Appraisal waivers let a mortgage close without a licensed appraiser ever valuing the home. Fannie Mae calls its program value acceptance, and Freddie Mac calls its version ACE. In February 2026, roughly one in four loans sold to the two agencies closed this way. The savings are real. So are the risks, and most borrowers never hear about them.
- How appraisal waivers work and how often lenders actually use them
- What you gain by accepting one and what protection you give up
- The specific situations where declining the waiver is the smarter move
What Appraisal Waivers Are and How They Work
An appraisal waiver is an offer from a lender’s automated underwriting system to close the loan without a traditional appraisal. Instead of an appraiser’s analysis, the loan relies on automated valuation models and prior appraisal data on file. Property and borrower characteristics in the application round out the picture. Fannie Mae’s value acceptance program generally requires a usable prior appraisal in its Collateral Underwriter database. Freddie Mac’s Automated Collateral Evaluation, or ACE, works on similar principles and caps eligibility at a $1 million value. You cannot request a waiver. The system offers one, and you and your lender decide whether to accept.
How Common Waivers Are in 2026
Waiver use peaked near 50 percent of agency loans during the 2021 refinance boom, then fell sharply. It has not disappeared. According to Appraisal Institute analysis of February 2026 data, the combined waiver share across both agencies stood at 26 percent. The split matters. Purchase loans still get traditional appraisals about four times out of five. Meanwhile, nearly half of no-cash-out refinances close on a waiver. In other words, if you are refinancing, a waiver offer is close to a coin flip. If you are buying, it is less common but far from rare, especially since eligibility expanded to loans with as little as 10 percent down.
What You Gain by Accepting One
The benefits are straightforward. Closings move faster because there is no appraisal appointment to schedule and no report to wait on. The borrower saves the appraisal fee, typically several hundred dollars, since the waiver itself costs nothing. For a routine refinance on a recently appraised tract home in a data-rich market, those savings are genuine and the added risk is modest. The agencies designed these programs for exactly that loan, and on that loan they work as intended.
What You Give Up, and Who Carries the Risk
An automated model has never stood in your kitchen. It cannot see the renovated bathroom that should raise the value, the failing roof that should lower it, unpermitted additions, deferred maintenance, or the industrial yard across the alley. When a waiver replaces an appraisal, nobody inspects anything, so all of it goes unpriced. For buyers, that removes one of the only independent checks against overpaying in a competitive bidding situation. For owners, an automated value that runs low can quietly cost you equity in a refinance. The risk does not vanish with the appraisal fee. It transfers to you, and it surfaces later, at resale, in a dispute, or when the tax bill arrives.
When to Decline the Waiver and Order the Appraisal
Accepting a waiver is optional, and there are situations where declining is clearly worth several hundred dollars. Decline it if the home is unusual for its market: vintage construction, atypical layout, a distinctive lot, or anything an algorithm would struggle to match against comparables. Decline it if the property has been significantly renovated since its last appraisal, because the model is valuing a house that no longer exists. Decline it if you are stretching on price in a bidding war, since that is precisely when an independent check matters most. And remember that waivers only cover the loan. Divorce, estate settlement, and property tax appeals still require an independent appraisal, because courts and assessors do not accept a lender’s automated value. When in doubt, our residential appraisal team can tell you whether your property is the kind an algorithm prices well, before you commit either way.
Offered a Waiver? Know What Your Home Is Actually Worth First
An automated model has never seen your property. Before you accept a waiver or sign a contract, get a certified valuation from appraisers who have.
Frequently Asked Questions
Do I have to accept an appraisal waiver if my lender offers one?
No. Waivers are optional. You can request a full appraisal for added assurance, and your lender can also require one even when the automated system offers a waiver.
What is the difference between value acceptance and ACE?
They are the same concept from different agencies. Value acceptance is Fannie Mae’s appraisal waiver program, and Automated Collateral Evaluation (ACE) is Freddie Mac’s. Both let eligible loans close without a traditional appraisal based on automated data.
How often are appraisal waivers used?
As of February 2026, about 26 percent of loans sold to Fannie Mae and Freddie Mac closed with a waiver. Nearly half of no-cash-out refinances used one, while roughly four out of five purchase loans still received a traditional appraisal.
Are appraisal waivers allowed on all property types?
No. Waivers are generally limited to one-unit homes, including condos, used as primary residences or second homes, with values under $1 million. Complex, unusual, or higher-value properties typically require a full appraisal.
Should I get my own appraisal even if my loan closed with a waiver?
It can be a smart move. A waiver only satisfies the lender. If you need a defensible value for a tax appeal, divorce, estate settlement, or to confirm you did not overpay, an independent certified appraisal is still the standard.
Get a Value an Algorithm Can’t Provide
PahRoo Appraisal & Consultancy provides certified residential and commercial valuations across Chicago, Dallas, Philadelphia, Phoenix, and Naples. Whether your lender offered a waiver or you need an independent value for a divorce proceeding, an estate, or a tax appeal, our team inspects what automated models never see. Have questions first? Visit our appraisal FAQ or learn more about PahRoo.