Property Inspection Waivers Save Time and Money!
Did you know that Supreme Lending offers Property Inspection Waivers?
The Property Inspection Waiver (PIW)...also known as an Appraisal Waiver...is a great benefit that can save buyers money. Certain low-risk transactions - mostly refinances - allow the lender to waive the appraisal, though they are only applicable on mortgage loans approved through an automated underwriting system.
There are a number of transactions eligible:
- Conventional Loans only, not applicable to FHA, VA or USDA loans.
- Purchase and Rate/Term Refinance loans:
- primary residences
- second homes
- investment properties
- Single-Family homes
If a lender receives a PIW offer on a loan casefile, are there situations in which the lender would still need to obtain an appraisal?
Yes. There may be certain situations in which a lender needs to obtain an appraisal, even though a PIW was offered on the loan casefile.
Examples of when an appraisal would need to be obtained include the following:
- The lender has reason to believe that fieldwork is warranted based on subsequent events such as a hurricane or other natural disaster.
- The lender is required by law to obtain an appraisal.
- The mortgage insurance provider requires an appraisal.
- There is evidence in the purchase contract that the home needs repair.
Is there a charge associated with the PIW?
Yes. The total charge is $225 when the PIW is exercised. This is half the cost of a typical appraisal.
If you have any questions or want to see if your loan could qualify for this waiver, please contact John here or by calling his office at (512) 524-8310.