Purchasing a new home can take longer than you think, especially when you enter a bidding war with other buyers who want the same property. Home buyers that want to put themselves ahead of other bidders can utilize a Property Inspection Waiver. Started by conventional loan company Fannie Mae in 2017, Property Inspection Waivers state that the buyer waives the home appraisal typically required to purchase a home.
How Does a Property Inspection Waiver Work?
When you forgo a home appraisal, Fannie Mae will pull information regarding the home’s previous appraisal reports and use them to suggest a fair market price based on those reports. If approved for the Waiver, you’ll receive a Property Inspection Waiver form to provide to the homeowner.
Why Is a Property Inspection Waiver Useful?
A Property Inspection Waiver fee doesn’t exist, while a professional home appraiser usually costs between $300 and $500 or more depending on the size, location, and condition of the property. By not waiting on a traditional appraisal, it also takes less time to work your way through the rest of the red tape required to buy a home. Many buyers also prefer to accept the bids of buyers using a Property Inspection Waiver since it will shorten the time between acceptance and finalization.
Property Inspection Waiver Eligibility
To use Property Inspection Waivers, potential homeowners must meet certain requirements set forth by Fannie Mae. Meeting the eligibility requirements means that potential homeowners must:
- Purchase a one-unit property
- Have the ability to pay a 20 percent down payment
- Meet particular credit requirements dependent on their specific situation
- Choose a home with an adequate history showing previous transactions and appraisal reports
While multi-unit properties definitely don’t pass the eligibility requirements for a Property Inspection Waiver, not all single-unit properties will either. For instance, trailers, manufactured homes, and recently built houses can’t utilize a Property Inspection Waiver.
How Do I Obtain a Property Inspection Waiver?
To get a Property Inspection Waiver, potential homeowners must first choose a home that meets the eligibility requirements for Fannie Mae to perform the Waiver. Your mortgage company can help you choose a home that meets the lender’s requirements. If the home meets the requirements and you pass for eligibility, your mortgage company will run the collected information on the home through a loan approval system.
The system will provide information on whether a property counts for the Waiver. After ensuring a positive result, your mortgage company will provide you with a Property Inspection Waiver disclosure form.
Learn More About Property Inspection Waivers With Cape Coral Mortgage
Whether buyers choose to attempt obtaining Property Inspection Waivers or not, purchasing a home can cause a lot of confusion and misunderstandings if not helped by professionals. If you want to purchase a home in the Cape Coral, FL, area, you can work with experienced and knowledgeable mortgage specialists. Call Cape Coral Mortgage at (239) 540-5555 to learn more about using a Property Inspection Waiver to purchase your home in Cape Coral, FL.