The Freddie Mac Appraisal Waiver is a program that allows some homebuyers and refinancing homeowners to skip the conventional in-person home appraisal during the mortgage process. Instead of sending an appraiser to inspect the property, Freddie Mac uses its extensive property data and the Automated Collateral Evaluation (ACE) system to estimate the home’s value.
When a lender submits a loan package to Freddie Mac, the ACE tool analyzes comparable sales, public records, and market trends to determine if it can reliably value the property without an on-site appraisal. If the property is well-documented and the loan meets certain criteria—such as a low loan-to-value ratio (typically 80% or lower), standard property type, or a rate-and-term refinance—the system may generate an appraisal waiver offer automatically.
Freddie Mac’s appraisal waiver primarily benefits borrowers by reducing the mortgage process timeline and eliminating appraisal fees, which usually range from $400 to $800. This faster process can facilitate quicker loan closings, especially useful in stable real estate markets.
However, not all loans or properties qualify. Properties that are unique, multi-family, manufactured homes, or located in areas with insufficient data typically do not receive waiver offers. Likewise, loans with higher risk profiles, such as cash-out refinance transactions, usually require a traditional appraisal.
It’s important to understand that an appraisal waiver is different from a home inspection. The waiver confirms the property’s value for lending purposes but does not assess the home’s condition. Buyers should always arrange a professional home inspection independently to identify potential issues.
Borrowers who receive a waiver offer can usually choose to decline it and request a traditional appraisal if they want a physical valuation or added peace of mind—though they would be responsible for the appraisal cost.
Freddie Mac’s counterpart, Fannie Mae, offers a similar Property Inspection Waiver (PIW) program with comparable eligibility rules.
For more insights on mortgage appraisal terms, see our entries on Fair Market Value Appraisal and Refinance Appraisal.
For official guidelines, visit Freddie Mac’s ACE+ PDR for Lenders page and the Consumer Financial Protection Bureau’s resource on Home Appraisals.
