Due to the outbreak of the coronavirus, the Federal Housing Finance Agency (FHFA) instructed both Fannie Mae and Freddie Mac to create alternative solutions for home appraisals. The U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Veteran Affairs (VA) followed shortly after. There still may be times where a full home appraisal will still be required, however, often times an appraisal can be done as a “desktop” appraisal or “drive by” appraisal.
A desktop appraisal involves reviewing public and private data on-line, analyzing comparative properties, reviewing square footage and pictures, and determining a value. A drive-by appraisal will also compare data, along with the action of an appraiser driving by the property to review its outside appearance, location, and various other aspects. Lastly, at times, properties will not require an appraisal at all, and will receive a Property Inspection Waiver. This is seen more on refinance transactions, but at times may be awarded on purchase transactions.
Please reach out to your Advisors Mortgage Loan Officer to discuss in more detail these alternate appraisal solutions that have been created to accommodate the continued strong demand for housing, both purchases and refinances.
We Are Happy To Help – Call us at 855-LOANS-USA or visit us at AdvisorsMortgage.com
Sources:
https://bit.ly/2vYhl6s
https://bit.ly/3bA0G8l
By: Jon Iacono
