Conventional Loan Without An Appraisal

We have a Conventional loan without an appraisal program? At this time, it is still possible to obtain a Conventional loan without an appraisal if Fannie Mae’s Desktop Originating system comes back with findings that state, “Appraisal Is Not Required.” It is rare but not impossible to obtain this. First, all borrowers need a high fico score. Secondly, they need a low debt to income ratio. Thirdly, they need lots of assets in the bank and state them on the loan application. Lastly, they must put  20% or more down on a new home. Over the last few years we have seen several borrowers obtain a the property inspection waiver when purchasing a new home. As a result, all of these borrowers were able to close much quicker since an appraisal was not required.

Approval Conditions:

However, even this Conventional loan without an appraisal is still subject to a regular loan approval. That means you will still need to go through the entire underwriting process. The lender requires borrowers to provide income and assets documentation to qualify for the loan. If you are a W-2’s employee, you provide your W-2’s for the last two years and paystubs for the last 30 days. One will also need current bank statements for the last two months. If you apply for a mortgage in November, that means you would need to turn in bank statements for September and October. The lender will not nor will they accept any bank statements prior to September. All documentation needs to be current. Therefore, start saving your bank statements ahead of time so that when you apply for a mortgage loan, you are ready to start the process. It takes roughly 30 days to close a loan from the time we obtain your loan documentation. That means you need to have your information readily available. For every day you delay in getting us the required loan documentation plan on one extra day to close your home mortgage loan.

What are the interest rates on a Conventional loan?
A person’s fico score and loan amount determine the interest rate. Since fico scores change daily please call in for a rate quote.

Article 1: Conventional Loan Without An Appraisal