The Happy Dance

Do You PIW?

On a purchase transaction, it seems that all parties - agents, lender, buyer, seller, and escrow - are all holding their collective breath waiting for the appraiser to complete their 30+ page report on the home's value - the appraisal.  All home purchases that have a loan require a home evaluation.  That doesn't mean, however, that all homes that have a loan need a full-blown appraisal.  On the Easterbrook Team, we are seeing more appraisal waivers (or PIW's- Property Inspection Waivers) generated through Fannie Mae's Desktop Underwriter (DU).  In the case of a PIW, Fannie Mae automatically generates a value in Desktop Underwriter based on the purchase price vs. value.

Home purchases that are 80% loan to value or less are eligible for the waiver.  The waiver, if granted, is generated when the loan officer runs Desktop Underwriter again right after the offer is accepted.  PIW's are only on conventional loans - Fannie and Freddie.  We also have read that Fannie Mae is planning on expanding the program to include underserved rural areas by increasing the loan to value in those areas.

If there is anything that will make a group of otherwise professional people do the Happy Dance, it's the PIW!  Call us on the Easterbrook Team to discuss the likelihood of obtaining a PIW on your next purchase transaction.