Table of Contents

No-Appraisal Refinancing: Meaning, Eligibility

By

澳洲幸运5开奖号码历史查询:James Chen

Updated January 12, 2025

Reviewed by

Doretha Clemon

Fact checked by

Katrina Munichiello

Part of the Series

Refinance a Home

Refinance Your Home

Know the Basics

Effects on Financial Status

When to Refinance

How to Refinance

Two lenders discussing whether a prospective borrower qualifies for no-appraisal refinancing — Ugur Karakoc / GettyImages

What Is No-Appraisal Refinancing?

No-appraisal refinancing is a type of mortgage&n꧋bsp;that replaces an existing loan on a residence where the lender does not require an independent, professional assessment of a home’s value to extend a new mortgage. A home appraisal determines the fair market value of a property and helps the lender determine that borrowers are not asking🍌 for more money than a home is worth.

Private lenders, such as banks and 澳洲幸运5开奖号码历史查询:mortgage companies, commonly require 澳洲幸运5开奖号码历史查询:appraisals to refinance. However, the lender may waive the refinance appraisal if borrowers have a 澳洲幸运5开奖号码历史查询:Federal ♛Housing Administration (FHA), 澳洲幸运5开奖号码历史查询:U.S. Department of🐟 Veterans Affairs (VA🅘), or 澳洲幸运5开奖号码历史查询:꧋U.S. Department of Agriculture (USDA) loan.

Key Takeaways

No-appraisal refinancing replaces an existing mortgage on a residence and does not require a new home value assessment.
Homeowners typically choose no-appraisal refinancing when they are unlikely to qualify for a new standard loan.
No-appraisal refinancing is available from government agencies, including the Federal Housing Administration (FHA), the U.S. Department of Veterans Administration (VA), and the U.S. Department of Agriculture (USDA).

Understanding No-Appraisal Refinancing

No-appraisal refinancing is good for homeowners but risky for mortgage lenders. Homeowners typically choose no-澳洲幸运5开奖号码历史查询:appraisal refinancing when they are unlikely to qualify for a new loan that requires an appraisal. No-appraisal 澳洲幸运5开奖号码历史查询:refinancing is available from several gove💫rnment sources:

The FHA 澳洲幸运5开奖号码历史查询:streamline refinance
The VA streamline refinance or 澳洲幸运5开𓃲奖号码历史查询:interest rate reducti♚on refinance loan
The USDA streamline refinance
澳洲幸运5开奖号码历史查询:Fannie Mae's "RefiNow" program and Freddie Mac's "Refi Possible" program

Important

Upfront fees on Fannie Mae and Freddie Mac home loans changed in May 2023. Fees were increased for homebuyers with higher credit scores, such as 740 or higher, while they were decreased for homebuyers with lower credit scores, such as those below 640. Another change: Your down payment will influence the fee you pay. The higher your down payment, the lower your fees, though it will still depend on your credit score. Fannie Mae provides on its website.

Benefits of an Appraisal

Borrowers may be better off refinancing with a loan that requires an appraisal. For borrowers paying 澳洲幸运5开奖号码历史查询:private mortgage insurance (PMI) due to a down payment of less than 20% of the purchase price, an appraisal🌜 may show the home’s value has increased and could void the PMI requirement on the new loan. The equity increase can also earn a lo༺wer interest rate on the refinanced mortgage.

Warning

Mortgage lending discrimination is illegal. 澳洲幸运5开奖号码历史查询:If you think youꦿ've been discriminated against based on race, religion, sex, marital status, use of public assistance, national orig🦂in, disability, or age, there are steps you can take. One such step is to file a report with the or the .

When Is a Mortgage Considered Underwater?

A mortgage is considered underwater when more is owed on the mortgage than the property is worth. If the borrower defaults on the mortgage, the lender won't be able to sell the property for the balance of the outstanding mortgage and incur a loss.

What Is Streamline Refinancing?

Streamline refinancing is a way for homeowners to refinance their mortgages with less paperwork and credit documentation. Borrowers with FHA, VA, or USDA loans may qualify for a streamline refinance that doesn't require appraisals.

Why Do Borrowers Refinance Their Mortgage?

A refinance can help a borrower change the terms of an existing loan and revise the 澳洲幸运5开奖号码历史查询:interest rates, payment schedules, or other terms.

The Bottom Line

No-appraisal refinancing is available from government agencies, including the Federal Housing Administration, Veterans Administration, and the Department of Agriculture. Refinancing a mortgage can help a borrower change the terms of an 澳洲幸运5开奖号码历史查询:existing loan and revise the interest rates and paym🍬ent schedule.ꦕ

Article Sources

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