Appraisal waivers: how value acceptance and ACE decide you skip the appraisal
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The appraisal is usually the slowest and least predictable step in a conventional file. Sometimes the loan does not need one — not because the lender is cutting corners, but because Fannie Mae or Freddie Mac has enough data on the property to accept the value you and the seller agreed on. Knowing when that happens, and when it should worry you, is worth a few minutes.
The vocabulary changed, the thing did not
Fannie Mae retired the term "appraisal waiver" in 2023 in favor of value acceptance, on the reasoning that nothing is being waived — the submitted value is being accepted on the strength of the data. Freddie Mac calls its version ACE, for automated collateral evaluation. Loan officers still say "waiver," and so does most of the internet.
There are three rungs, not one:
| Option | Who visits the property | Who gives an opinion of value |
|---|---|---|
| Value acceptance / ACE | Nobody | Nobody — the agency accepts the contract or estimated value |
| Value acceptance + property data / ACE+ PDR | A trained data collector, interior and exterior | Nobody — the collector reports facts, not value |
| Hybrid appraisal | A data collector | An appraiser, working from the collected data off-site |
Below those sits the traditional appraisal, with a licensed appraiser inspecting the property and signing an opinion of value.
How the offer actually arrives
You cannot apply for a waiver, request one, or appeal being refused one. The lender submits the file to the automated underwriting system — Desktop Underwriter at Fannie Mae, Loan Product Advisor at Freddie Mac — and the system either returns an appraisal alternative or does not. The decision leans on whether a usable prior appraisal for that address already sits in the agency's collateral database, how confident the model is in the submitted value, and the loan's own risk profile. A prior appraisal that was flagged for overvaluation takes the property out of contention.
Two consequences follow. First, the offer belongs to the lender, who chooses whether to exercise it. Second, it has a shelf life measured against the note date, so a purchase that drags through a long escrow can lose an offer it had at application. Where this sits in the wider sequence is covered in our guide to the mortgage underwriting process.
Eligibility, in the shape it takes today
Fannie Mae announced in late 2024 that from the first quarter of 2025 the loan-to-value ceiling for value acceptance on purchases of principal residences and second homes would rise from 80% to 90%, and that value acceptance with property data would go up to the program's own limits — which reaches the 97% territory of the low-down-payment products. Freddie Mac moved in the same direction with ACE and ACE+ PDR.
Refinance ceilings are set separately and are tighter on cash-out than on rate-and-term. Because these thresholds are revised by bulletin, treat any number you read — including these — as a starting point and confirm the current eligibility matrix in the Selling Guide or with the lender.
The exclusion list is the part that changes least. Value acceptance is generally not available for:
- two- to four-unit properties, co-ops and manufactured homes;
- new construction and construction-to-permanent loans;
- renovation mortgages such as HomeStyle, covered in our guide to renovation loans;
- leasehold estates and properties under resale restrictions;
- properties valued at $1,000,000 or more;
- transactions involving a gift of equity;
- manually underwritten loans, and any file the system did not approve;
- loans where rental income from the subject property is used to qualify.
A lender also cannot exercise a waiver after obtaining an appraisal, or where one is legally required — a higher-priced mortgage loan under Regulation Z carries its own written appraisal requirement that no agency option overrides. Our Regulation Z page sets out that framework.
What it saves
Freddie Mac reports data collection for ACE+ PDR running around $200 against roughly $600 for an appraisal report, an average borrower saving near $400, and closings faster by about twelve days on purchases and ten on refinances as of the second quarter of 2025. Fannie Mae has put cumulative borrower savings from its appraisal alternatives above $2.5 billion since early 2020. Those are the agencies' own published figures, and they describe averages rather than what your file will do.
Speed is often worth more than the fee. An appraisal that takes three weeks in a thin market can push a closing past a rate lock expiry, and extensions cost real money — see our guide to mortgage rate locks.
What you give up by accepting one
- No independent check on the price. The agency accepting your contract price is not the same as a professional confirming the house is worth it. On a purchase, you are buying at the number you negotiated, full stop.
- No appraisal contingency to lean on. A low appraisal is leverage; many buyers have renegotiated with one. Without an appraisal there is no low appraisal, and no appraisal gap conversation to have.
- Nobody looked at the property. Appraisers are not inspectors, but they do note obvious condition problems. A pure waiver means no third party set foot inside — which makes a proper home inspection more important, not less.
- No appraisal on file for later. If you refinance or want PMI removed on a value argument, having no recent appraisal can mean ordering one at your own cost.
- Selection is not neutral. Waivers concentrate where data is dense and the transaction is clean. Unusual properties, thin markets and rural addresses are exactly the ones that rarely qualify — and often the ones where a valuation opinion is most useful.
If a waiver is offered and you would rather have an appraisal, you can ask the lender to order one; it is your money and the file simply proceeds as a normal appraised loan. That is a reasonable request on a competitive-market purchase, an unusual house, or any deal where you are stretching. For where this sits in the broader conventional picture, our conventional loan hub is the starting point, and a HUD-approved housing counselor will talk through a purchase for free. Claude Loan is an information site, not a lender, broker or appraiser.
Frequently asked questions
Can I ask my lender for an appraisal waiver?
You can ask whether the automated underwriting system returned one, but you cannot request or obtain one by asking. The offer is generated by the agency's system from the property and loan data, and the lender either exercises it or does not.
Does a waiver mean the house is worth what I am paying?
No. It means the agency is willing to accept the submitted value without an appraisal for its own risk purposes. It is a lending decision about their collateral, not a valuation opinion issued to you.
Do I still need a home inspection?
Yes, and arguably more than usual. An inspection covers condition, systems and safety, which no appraisal ever guaranteed. With a pure waiver, nobody at all has been inside on your behalf until the inspector arrives.
Are appraisal waivers available on FHA and VA loans?
Value acceptance and ACE are Fannie Mae and Freddie Mac programs and apply to conventional loans. FHA, VA and USDA run their own valuation requirements through their own appraiser panels, with separate rules on when a full appraisal is needed.
Why did my waiver disappear before closing?
Common reasons include a change in the loan amount, price or product that caused the file to be resubmitted, the loan moving to manual underwriting, a switch to a program that is not eligible, or the offer's time window running out during a long escrow.
Your state: conventional loans and mortgage law
The federal rules above apply everywhere; the rest depends on where the home is. For each state, one page gives the 2026 conforming limit of every county and the monthly cost of a conventional loan on the state median; the other gives the state layer: who closes the loan, recording taxes, prepayment, licensing, first-time buyer programs, hard money rules and foreclosure.
Sources
Related: Mortgage underwriting: what happens between pre-approval and clear to close, Appraisal gap: what happens when the home appraises below your offer, Conventional loan requirements in 2026: what Fannie Mae’s guide actually says, Mortgage rate locks: how long to lock, what extensions cost, when to float. Hub: Conventional loan.