The coronavirus has just changed the way in which mortgage lenders are now appraising homes. Due to market volatility and changing market conditions, Fannie Mae and Freddie Mac just recently announced that they’re going to be loosening appraisal standards. Here’s how these new appraisal standards apply to you…

On purchase transactions for a primary residence mortgage lender now only want an exterior appraisal only a drive-by. This is up to 97% loan to value for primary residence transactions.

On rate and term refinance for a primary home second home or a rental property the same applies exterior appraisal inspection only.

On a Cash-out refinance a full interior and exterior appraisal report. No matter what the occupancy, a full interior, and exterior inspection appraisal are going to be required. Additionally, these are changes to Fannie Mae and Freddie Mac loans only not government loans such as FHA, VA, and USDA. This also does not cover Jumbo loans which are any loan size greater than the maximum conforming high balance loan limit in the area in which the property is located. So for example in Sonoma County, California the loan limit is $704,950 anything for a loan bigger than $704,950 on a case-by-case investor basis only may not require a full inspection report.

Mortgage tip: that home improvement project you’ve been working on for redoing the bathroom etc. will no longer cause your rate and term payment reduction loan to be on hiatus.

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