Freddie Mac recently launched a new mortgage program being released called ACE, the new Automated Collateral Evaluation. This new system will provide some select lenders with the ability to waive appraisal requirements for certain loan products.

The last time we saw a product similar to this was when the Home Affordable Refinance (HARP) program launched which helped borrowers that were underwater on their property. I personally haven’t completed a HARP loan in quite some time as the program still requires that your loan has been originated prior to May 31st of 2009.

Since that time we have seen appraisal costs rise from $300.00 –  $450.00 to over $1000.00 in some states and property sizes. I can see this program especially being popular in areas where appraisals are at a much higher cost with extremely slow turn times. Some of the states will very slow turn times are Oregon, Colorado, New Jersey and in some smaller metro areas around the country.

With that said, getting a new mortgage without having to go through the expense and hassles of an appraisal is very advantageous to many borrowers. But you must still qualify for this conventional loan under the traditional means, this is not a stated income or stated asset loan product.

How will we know if you’re eligible for a home loan without an appraisal?

  • The Automated Underwriting System will identify the loan as being eligible to receive an “Appraisal Waiver” and if accepted, an appraisal will not be required.
  • There is no fee for this service and the appraisal waiver offer is valid for 120 days.

Eligibility Requirements under this program:

  • No-Cash Out Refinance with a maximum loan to value of 80%
  • Primary Residence and Second Homes only/No Investment Properties
  • Single Family/1 unit properties only

Ineligible Loans:

  • Purchase Transactions
  • Cash-Out Refinances
  • Investment Properties
  • Mortgages secured by condos, manufactured homes and leasehold estates

Find out if you are eligible for an appraisal waiver today! Call 1-800-779-4547 or apply online @

Erik Sandstrom
LoanSafe's Mortgage Expert
I'm a Senior Loan Officer and LoanSafe mortgage expert. If you need a live rate quote, or need help getting a new mortgage, please call me direct anytime at 619-379-8999.