Introduction
The real estate valuation landscape is evolving, with Fannie Mae and Freddie Mac announcing significant updates to their inspection-based appraisal waiver programs. These changes, effective in early 2025, expand eligibility requirements and enable lenders to leverage technology for more efficient, cost-effective property assessments. This blog provides an in-depth look at these inspection-based waivers, detailing how they work and explaining how Asteroom’s property data collection services play a critical role in meeting the needs of lenders and borrowers alike.
What Are Inspection-Based Appraisal Waivers?
Inspection-based appraisal waivers, such as Fannie Mae’s Value Acceptance + Property Data and Freddie Mac’s ACE + Property Data Report (PDR), provide lenders with an alternative to traditional appraisals. These waivers combine technology with comprehensive property data collection, ensuring that essential information about a property’s interior and exterior is gathered by vetted property data collectors. For lenders and borrowers, this approach simplifies the mortgage process, reduces appraisal costs, and increases speed and accessibility in securing home financing.
Asteroom offers a unique advantage for lenders by providing reliable property data collection services that meet the rigorous standards of these programs. Our network of trained certified data collectors, including experienced appraisers and real estate agents, ensures that lenders receive accurate and detailed property data, essential for informed decision-making.
Recent Changes to Inspection-Based Waivers for 2025
Both Fannie Mae and Freddie Mac have raised the maximum loan-to-value (LTV) ratio for their respective inspection-based waivers. Starting in Q1 2025:
- Fannie Mae’s Value Acceptance + Property Data will increase from 80% to align with program limits, allowing more borrowers to qualify.
- Freddie Mac’s ACE + PDR will now be available for purchase transactions up to applicable program limits, supporting LTVs up to 97% for certain loans, such as Home Possible®.
These updates mean that a broader range of borrowers, especially first-time and low-income homebuyers, can access the savings and efficiencies of inspection-based appraisal waivers. With programs like Asteroom’s property data collection services supporting these waivers, lenders can seamlessly integrate comprehensive property inspections into their valuation processes.
How Asteroom Supports Fannie Mae and Freddie Mac’s Inspection-Based Waivers
Asteroom’s property data collection services are designed to align perfectly with the requirements of both Fannie Mae’s and Freddie Mac’s inspection-based waivers. Here’s how we support lenders:
- High-Quality Data Collection: Asteroom’s network of trained property data collectors captures detailed interior and exterior information. By utilizing advanced real estate validation technology, we help lenders meet inspection requirements without traditional appraisals, facilitating faster approvals and cost savings.
- Efficiency and Consistency: Our 3D tour digital home valuation tools enable consistent and accurate property assessments across diverse housing markets, ensuring that lenders can rely on Asteroom to streamline inspection-based waivers.
- Scalability for High-Volume Needs: For lenders managing high volumes of transactions, Asteroom provides scalable property data collection solutions that can meet fluctuating demand while maintaining quality and compliance with Fannie Mae’s and Freddie Mac’s standards.
Benefits for Borrowers and Lenders
Since the onset of appraisal alternatives, both Fannie Mae and Freddie Mac have helped save borrowers billions in fees. Inspection-based appraisal waivers specifically benefit both lenders and borrowers by:
- Reducing Costs: These waivers minimize traditional appraisal fees, saving borrowers an estimated $1.63 billion through Freddie Mac’s ACE waivers and even more through Fannie Mae’s Value Acceptance programs.
- Accelerating the Loan Process: By reducing the need for full appraisals, inspection-based appraisal waivers allow lenders to expedite loan approvals, making home financing faster and more accessible.
- Enhancing Flexibility in Property Valuation: Inspection-based waivers allow lenders to tailor appraisal options to each transaction’s risk level, optimizing resources and reducing unnecessary steps in low-risk scenarios.
Freddie Mac’s and Fannie Mae’s Broader Affordability Initiatives
These inspection-based appraisal waivers are part of larger initiatives by Fannie Mae and Freddie Mac to make housing more affordable. Freddie Mac’s introduction of LPA Choice and its expansion of the DPA One® platform, which now includes down payment assistance data across nearly 40 states, further supports affordability efforts. Each of these programs exemplifies how automated valuation solutions and inspection-based appraisal modernization tools can enhance the overall efficiency of the real estate valuation process.
Asteroom’s Commitment to Affordable, Accurate Home Valuation
As the real estate industry embraces more 3d tours and AI tech-driven, data-backed solutions, Asteroom remains at the forefront, providing third-party property inspectors who deliver detailed, consistent property data to lenders nationwide. With our services, lenders can confidently implement inspection-based waivers, knowing they meet the high standards required by Fannie Mae and Freddie Mac. This commitment positions Asteroom as a leader in real estate valuation modernization, aligning with the goals of making homeownership more affordable and accessible.
Conclusion: The Future of Inspection-Based Appraisal Waivers
Fannie Mae’s and Freddie Mac’s expanded inspection-based waiver programs signal a shift toward a more efficient, data-driven approach to home valuation. As more lenders adopt inspection-based appraisal waivers and automated valuation solutions, Asteroom will continue to support the industry with cutting-edge property data collection services that streamline the homebuying process. By choosing Asteroom, lenders gain access to high-quality, reliable data that helps them adapt to a new era of appraisal modernization.
