02/04/2022
Now here's a question we get frequently!
A PIW stands for Property Inspection Waiver and we may give you the option to use one if you are eligible! This means an appraisal would not be needed in order for you to be approved for a mortgage - A PIW could be a major time saver when trying to close a loan super quickly!
How does this work?
Well, the home needs to have had a recent entry in Fannie Mae or Freddie Mac's database. A home that has never been physically appraised, or hasn't been appraised for quite some time wont be eligible. Essentially, the computer will take Fannie or Freddie's previously collected data + the current market climate to determine a new value.
Can anyone get a PIW?
Well, not necessarily. In addition to the need for previous data on the property in Fannie or Freddie's database, other compensating factors do come into play such as the strength of the loan. The program will look for the borrower to have excellent credit as well as sufficient assets to grant a PIW. Remember, bypassing an appraisal is a "risk" for a bank so compensating factors are needed to offset this risk!
Any additional questions feel free to email us at [email protected]
