Senior Mortgage Loan Officer Zac Gaynor of Central Pacific Bank Kailua Branch recently shared the following great news for home buyers:
As of this past September, both Fannie Mae and Freddie Mac* are now in the appraisal-free arena by allowing property waiver inspections on some purchase loans with low loan-to-value ratios. It could save borrowers an estimated $650 in fees and could reduce closing times by as many as 10 days. Assessing the valuation of a property will use statistical models and algorithms built on a database of over 26 million appraisals to evaluate appraisal quality and drive greater confidence in the valuation of properties securing the loans acquired.
However, Fannie Mae and Freddie Mac is not saying good-bye to the appraisal community. It explained the vast majority of purchase mortgages will still require an appraiser. An appraisal waiver will be determined by the overall risk of a loan including a significant down payment, high FICO/Income, and cash reserves.
For further questions related to this new option available to buyers who qualify, contact:
Zac Gaynor NMLS# 378781
Central Pacific Bank - Kailua Branch
*Fannie Mae and Freddie Mac were created by Congress. They perform an important role in the nation’s housing finance system – to provide liquidity, stability and affordability to the mortgage market. They provide liquidity (ready access to funds on reasonable terms) to the thousands of banks, savings and loans, and mortgage companies that make loans to finance housing.
Fannie Mae and Freddie Mac buy mortgages from lenders and either hold these mortgages in their portfolios or package the loans into mortgage-backed securities (MBS) that may be sold. Lenders use the cash raised by selling mortgages to the Enterprises to engage in further lending. The Enterprises’ purchases help ensure that individuals and families that buy homes and investors that purchase apartment buildings and other multifamily dwellings have a continuous, stable supply of mortgage money.