You can refinance without a traditional appraisal in two ways. The first is a streamline refinance of an existing FHA or VA loan, where the program itself does not require one. The second is a conventional loan where the lender’s automated underwriting offers to accept your estimated home value instead. Neither is a right you can request. Both depend on your loan type, your equity and your property, so the first step is finding out which door your file can use.
Below is how each path works, the limits that apply, what cash-out seasoning means, and what to do if an appraisal is ordered and comes in low.
TL;DR
- Government streamlines: an FHA Streamline needs no appraisal and has no loan-to-value limit, but it only works if you already have an FHA loan and cannot take cash out.
- Conventional loans: Fannie Mae and Freddie Mac can accept a lender-submitted value, but only when their underwriting systems offer it. Roughly, equity of 10% is needed for a no-cash-out refinance and 30% for a primary-residence cash-out.
- Cash-out: the loan being paid off generally has to be at least 12 months old, and one borrower must have been on title for at least six months.
- Low appraisal: you get one reconsideration of value per report, submitted through the lender with documented evidence.
Table of Contents
- What “no appraisal” actually means
- Path 1: Streamline refinances on existing government loans
- Path 2: Conventional loans with value acceptance
- Can you do a cash-out refinance without an appraisal?
- Is skipping the appraisal worth it?
- If an appraisal is ordered and comes in low
- Our perspective
- See which path your loan fits
- FAQ
- Sources
What “no appraisal” actually means
An appraisal is an independent estimate of what your home is worth, and the lender uses it to confirm that the new loan is safe relative to the property. In a refinance, it also sets the loan-to-value ratio (LTV): your loan balance divided by your home’s value. A $240,000 balance on a $400,000 home is 60% LTV.
Skipping the appraisal does not skip the underwriting. The lender still reviews your credit, income, assets and the property. What changes is the source of the value.
On conventional loans, Fannie Mae calls this value acceptance. Its underwriting system, Desktop Underwriter (DU), compares the value the lender submitted with Fannie Mae’s property data and analytics. If the value looks supportable, DU issues an offer to accept it with no appraisal. Fannie Mae replaced the older term “appraisal waiver” with “value acceptance” effective September 3, 2025. You will still see both names used, and they describe the same idea.
Two things follow from that:
- It is an offer to the lender, not an entitlement for you. The lender decides whether to use it, and Fannie Mae’s rules say the lender must not use it if it believes an appraisal is warranted based on additional information or later events.
- You cannot know in advance. The offer appears only after a full application is run through the system. A broker can tell you whether your profile fits the pattern, but not guarantee the result.
The value itself must be honest. Freddie Mac requires its lenders to have procedures that prohibit changing the estimated value just to obtain a waiver or better terms, such as avoiding mortgage insurance.
Path 1: Streamline refinances on existing government loans
If you already have an FHA, VA or similar government-backed loan, a streamline refinance is usually the simplest no-appraisal route. These programs exist to lower your rate or payment on a loan the government already insures, so they ask for less documentation.
FHA Streamline
The FDIC’s FHA Streamline guide says the program does not permit cash out, has no appraisal requirement and no LTV limits. The maximum new loan is based on the principal balance of the FHA loan you are refinancing.
The same guide sets timing rules. You must have made at least six payments, at least six months must have passed since your first payment due date, and at least 210 days must have passed since the closing of the loan being refinanced. Because there is no appraisal, an FHA Streamline can work even if your home has lost value, which is the situation where a conventional refinance would stall.
For the details and the traps, read our guide to the FHA Streamline refinance. If you want a broader view of FHA products, see our FHA loans page.
VA Interest Rate Reduction Refinance Loan (IRRRL)
The VA’s streamline for existing VA loans is called the IRRRL. According to a 2026 rules summary, it does not require an appraisal, income documents or a credit review unless the loan is delinquent or VA is approving it to stop a foreclosure. You must make six consecutive payments and wait until 210 days after the first payment due date of the old loan. For a fixed-to-fixed refinance, the new rate must be at least 50 basis points (half a percentage point) lower.
A VA loan can be refinanced this way only into another VA loan. If you want to leave VA financing or take cash out, a different process applies, and an appraisal is typically part of it.
Our streamlined refinance process guide walks through the paperwork for these programs.
Path 2: Conventional loans with value acceptance
If your current loan is conventional, your no-appraisal chance comes from the automated findings on a Fannie Mae or Freddie Mac loan. The rules are published, so you can see where you stand before you apply.
Fannie Mae eligibility
Fannie Mae’s selling guide lists the eligible transactions: one-unit properties, principal residences and second homes, investment-property refinances, and certain purchase, limited cash-out and cash-out refinances. The loan must also receive an Approve/Eligible recommendation from DU.
It also lists what is excluded:
- Two- to four-unit properties
- Co-ops and manufactured homes
- Leasehold properties
- Texas Section 50(a)(6) loans (Texas home equity loans)
- A value of $1,000,000 or more
- Gifts of equity
- Manually underwritten loans
The lender must also order an appraisal when the law requires one, when rental income from the subject property is used to qualify, or when the lender believes one is warranted.
On equity, Fannie Mae’s value acceptance page says limited cash-out refinances on principal residences and second homes are eligible up to 90% LTV/CLTV, and cash-out refinances on principal residences up to 70%.
Freddie Mac eligibility
Freddie Mac’s Seller/Servicer Guide permits an appraisal waiver on certain Loan Product Advisor mortgages. Its published maximum LTV/TLTV ratios are:
| Refinance type | Property | Maximum LTV/TLTV |
|---|---|---|
| No cash out | Primary residence or second home | 90% |
| Cash out | Primary residence | 70% |
| Cash out | Second home | 60% |
What this means in dollars
Take a home you estimate at $450,000 with a $300,000 balance. That is about 67% LTV. A no-cash-out refinance sits well inside the 90% limit. A primary-residence cash-out refinance up to 70% would allow a new loan of about $315,000, so you could take roughly $15,000 in cash before hitting the ceiling. A $50,000 cash-out would put you near 78% and outside the no-appraisal range, so an appraisal would be needed.
Our guide to refinance LTV limits by program shows how the ceilings differ when an appraisal is ordered.
What quietly removes the offer
Even a strong file can lose the offer. Common causes are a property type on the exclusion list, rental income used to qualify, an estimated value that DU finds hard to support, or new information about the property’s condition. Investors should note the rental income rule in particular: if the income from the subject property is needed to qualify, an appraisal is required.
Can you do a cash-out refinance without an appraisal?
Sometimes, but the room is smaller. Within the conventional limits above, a primary-residence cash-out can get value acceptance only up to 70% LTV, and a second-home cash-out under Freddie Mac only up to 60%. Most borrowers who want substantial cash will land above those ratios and will need an appraisal.
Cash-out refinances also come with seasoning rules. Seasoning is the minimum time something must have existed before the new loan can close. Two separate tests apply under Fannie Mae’s cash-out rules:
- Age of the existing first mortgage. If the cash-out pays off a first mortgage, that loan must generally be at least 12 months old, measured from its note date to the new loan’s note date.
- Time on title. At least one borrower must have been on the property title for at least six months before the new loan disburses, subject to stated exceptions for certain ownership situations.
Freddie Mac applies the same 12-month test to the loan being paid off, as documented in its Loan Product Advisor feedback guidance, which identifies the policy as effective March 7, 2023.
If you bought or refinanced within the last year, check both dates before you plan a cash-out. A limited cash-out refinance, which only pays off the existing loan and closing costs, does not carry the same cash-out seasoning.
Is skipping the appraisal worth it?
The main benefits are time and a lower closing cost. Articles ranking for this topic commonly cite an appraisal cost of $300 to $400 at closing, though prices vary by property and area. Skipping the appraisal also removes the scheduling step, the home visit and the wait for the report, which is often where a refinance slows down.
The real test is the loan itself. A waived appraisal saves money only if the rate, fees and term are right. Compare the new payment, the closing costs and your break-even point with our refinance calculator, and read when to refinance if you are unsure about timing.
You are also entitled to see how the value was derived. If the lender used an appraisal, you can ask for a copy of the report.
If an appraisal is ordered and comes in low
A low appraisal means the value is below what you or the lender expected, so the LTV is higher than planned. It can push you over a program limit, raise your rate tier or add mortgage insurance. You still have options.
Request a reconsideration of value
A reconsideration of value (ROV) is a formal request that the appraiser review the report. On May 1, 2024, Fannie Mae, Freddie Mac and HUD published borrower-initiated ROV requirements to make the process consistent. Under them, you may request one ROV per appraisal report, and the appraiser must update the report to correct errors and comment on the changes.
How to do it well:
- Go through the lender. You do not contact the appraiser yourself. Your loan officer submits the request.
- Bring specifics. Point to factual errors such as wrong square footage or bedroom count, improvements the report missed, or recent sales that match your home better. Opinions about worth do not move a value.
- Act quickly. The request is easier to handle before the file moves further along.
The FDIC notes that an ROV is a way to seek an accurate and fair valuation, but not every lender offers one because the law does not require it. If you believe the valuation was influenced by discrimination, the same FDIC page points to the Appraisal Subcommittee’s hotline and to a HUD complaint. The five federal agencies also issued final ROV guidance in July 2024, encouraging institutions to let consumers provide information the appraiser did not consider.
Restructure the loan
If the value stands, adjust the plan to fit it:
- Lower the loan amount. Pay down the balance or take less cash out so the LTV drops under the limit.
- Switch to limited cash-out. Refinancing only the existing balance and costs needs less equity than pulling cash.
- Change programs. If you hold an FHA or VA loan, a streamline avoids the appraisal entirely, so the low value no longer matters.
- Wait. Paying down principal and letting values recover can move you under a threshold at a later date.
Our perspective
Most homeowners do not need a no-appraisal refinance as such. They need a lower payment or access to equity with as little friction as possible. The appraisal is a means to that end, and sometimes the program can do without it.
The mistake we want you to avoid is choosing a loan because it promises no appraisal and then paying for it in rate or fees. We compare offers across lenders so that you see the full cost of each path, not just the steps it skips.
If you hold an FHA or VA loan, the streamline question comes first. If your loan is conventional, the value-acceptance question comes from your equity, property type and how the loan will be used. We take you through that in a personal consultation, and our application is fully online, so you can send documents on your schedule.
David Mordue
See which path your loan fits
We offer refinance loans across several programs, including 15-year and 30-year fixed, ARM, VA, cash-out and home equity. You complete the application online, we compare rates across lenders, and loans can fund in under 21 days. Whether an appraisal is needed depends on your loan type, equity and property. Start with the refinance calculator to see the payment you are aiming for, then talk to us about the route.
To prepare, gather your latest mortgage statement, your note date and the date you took title. Our documents checklist lists the rest, and the appraisal process guide shows what to expect if one is ordered.
FAQ
Can I refinance without an appraisal if I have a conventional loan?
Yes, sometimes. Fannie Mae and Freddie Mac can accept a lender-submitted value when their underwriting systems offer it. Equity limits apply, such as 90% LTV for a no-cash-out refinance on a primary residence, and the property cannot be on the exclusion list, which includes two- to four-unit homes and values of $1,000,000 or more.
Can I do a cash-out refinance without an appraisal?
Only with substantial equity. On a primary residence, Fannie Mae and Freddie Mac limit no-appraisal cash-out refinances to 70% LTV, and Freddie Mac sets 60% for second homes. The loan being paid off must also generally be at least 12 months old.
Does an FHA Streamline require an appraisal?
No. The FDIC’s guide says the program has no appraisal requirement and no LTV limits, but it does not allow cash out. You need an existing FHA loan and must meet the payment and timing rules.
What if my refinance appraisal comes in low?
Ask your lender for a reconsideration of value and support it with documented errors, missed improvements or better comparable sales. You can request one per report. If the value stands, a smaller loan, a limited cash-out structure or a streamline program may still work.
Is a no-appraisal refinance cheaper?
It removes the appraisal fee and usually shortens the process, but the total cost depends on the rate and other closing costs. Compare the full loan estimate rather than only the appraisal line.
Sources
- Value Acceptance, Fannie Mae
- Loan Delivery Job Aids: No Appraisal, Fannie Mae
- Value Acceptance (Appraisal Waiver), Fannie Mae Selling Guide
- Cash-Out Refinance Transactions, Fannie Mae Selling Guide
- Seller/Servicer Guide, Freddie Mac
- Loan Product Advisor Feedback Message Updates, Freddie Mac
- Streamline Refinance, FDIC
- VA IRRRL Streamline Refinance: 2026 Rules
- Reconsideration of Value (ROV), Fannie Mae
- FDIC Tips on Appraisal Bias and Valuation
- Agencies finalize interagency ROV guidance, Federal Reserve Board