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.
