Fannie & Freddie change home mortgage appraisals over COVID_19

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.

Looking for a low-cost mortgage? Get a fast quote now.

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

how to buy a home from family without needing any cash

How to buy a home from family without needing any cash

Have you ever considered buying a house from a family member? It’s a unique opportunity…

5 practical ways to increase your purchasing power when buying a home

How to avoid a contingent offer to buy a new home without selling your current home first

Buying a new home while still owning your current home can be a challenging process,…

why being a picky home buyer could be an issue

Why being choosy as home buyer could be problematic

You’ve decided to buy a home, you’ve gotten preapproved with a lender, your file has…

can you buy a house with less than 600 credit score?

Can you buy a house with a less than 600 credit score?

For families were looking to buy a home one of the biggest setbacks people have…

View More from The Mortgage Files:

begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!