FNMA Rural High-needs Appraisal Waiver
…which counties in the US qualify for this kind of FNMA rural high-needs appraisal waiver…
Appraisers, you may not be affected by this new FNMA waiver process. Then again, if you service certain ‘poverty’ counties in the US, you may. A surprise to me… Kings County, New York [Brooklyn], is one such county.
The map will show which counties in the US qualify for this kind of FNMA rural high-needs appraisal waiver. Once the map opens, you can enlarge and move it so you can see your geographic area better. There is a color code on the lower right side of the page.
If a waiver is accepted, the property STILL has to have a qualified property inspection done to report CONDITION.
NOTE: a borrower NEVER has to accept a waiver, in any of the waiver programs that are available. The lenders will ‘sell’ them on the cost savings, but borrowers still can request having an appraisal done so that there is no nagging question about the property value and loan amount. This might be a point you can use if/when advertising your appraisal business in local media.
Excerpt from CLA
Fannie Mae Will Consider Appraisal Waiver in Rural High-Needs Areas
For certain home purchase transactions in rural high-needs areas, Fannie Mae may offer to waive the appraisal in exchange for a mandatory home property inspection. The rural high-needs appraisal waiver seeks to help low- to moderate-income borrowers avoid unanticipated, potentially high-cost, post-purchase repairs.
This offer will be considered only for property locations designated as rural high-needs by the Duty to Serve requirements…
The following eligibility requirements must also be met:
Purchase transactions only
Desktop Underwriter (DU) loan casefile receives an Approve/Eligible recommendation
One-unit principal residence properties (excluding manufactured homes)
Borrowers with income equal to or less than 100% of the area median
LTV ratios up to 97%; and CLTV ratios up to 105% with a Community Seconds®