Washington Report

Advocacy Updates from Washington D.C.

Rural Appraisal Waivers

Fannie Mae is currently offering appraisal waivers in exchange for a mandatory home property inspection, for properties in high-needs rural areas as determined under the Duty to Serve Underserved Markets rule. The appraisal waivers are intended to reduce cost for borrowers while ensuring properties meet certain safety standards. Fannie Mae expects the home inspections to help mitigate the risk of delinquency or default due to future repair costs. The waivers will become available in late 2018.

To be eligible for an appraisal waiver, the following requirements must be met:

  • Purchase transactions only
  • Desktop Underwriter® (DU®) loan casefile receives an Approve/Eligible recommendation
  • One-unit principal residence properties (excluding manufactured homes)
  • Borrowers with income equal to or less than 100% of the area median
  • LTV ratios up to 97%; and CLTV ratios up to 105% with a Community Seconds®

Fannie Mae Fact Sheet on Rural Appraisal Waivers

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