Do I Need a Home Appraisal for This Loan, or Can It Be Waived?
Whether you need a full home appraisal depends on your loan type and how much equity you have, and yes, it can sometimes be waived in favor of a faster automated valuation. Many home equity lines of credit and strong equity refinances skip a full in person appraisal, while first mortgage refinances, VA cash out loans, and some state specific situations typically still require one. When a full appraisal is required, it is generally paid by the borrower and is not refunded if the loan does not close.
Last updated July 22, 2026When can an appraisal be waived?
An appraisal waiver is more common on home equity lines of credit (HELOCs) and on loans where the borrower has strong equity or a strong credit profile. In these cases, a lender may rely on an automated valuation model (AVM) or a similar desktop review of public data instead of sending an appraiser to the home. This is sometimes called value acceptance. When a waiver applies, the borrower usually avoids the full appraisal fee, though a small processing or review fee may still apply depending on the loan.
When is a full appraisal still required?
A traditional, in person appraisal is commonly required for a full first mortgage refinance, and it is always required for a VA cash out refinance, as distinct from a VA streamline (IRRRL) refinance, which typically does not require one. Some states also have their own rules that affect valuation requirements. For example, Texas has specific constitutional provisions covering home equity loans that lenders must follow. Property condition can also play a role: homes with visible issues, unique features, or limited comparable sales nearby are less likely to qualify for a waiver.
What does an appraisal cost, and what happens if the loan doesn't close?
When a full appraisal is required, the cost is generally paid out of pocket by the borrower as part of closing costs, and it is due whether or not the loan ultimately closes. As of 2026-07, a typical home appraisal fee falls in a range of roughly a few hundred dollars, though the exact amount depends on the appraiser, the property's location, and its size and complexity. Because this fee compensates the appraiser for completed work, it is treated as non-refundable even if a loan application does not move forward.
What if the appraisal turns up problems with the property?
An appraisal is not only about value. If the appraiser notes needed repairs, such as safety issues, unfinished flooring, or other condition problems, the appraisal report can come back "subject to" those repairs being completed before the loan can close. In that case, the borrower or seller typically needs to address the noted items and the property may need a follow up inspection before funding can proceed.
It depends on your situation
- HELOC or strong equity and credit profile: often no full appraisal is needed. An automated valuation model or a waiver may be used instead, which can save time and cost.
- First mortgage refinance, VA cash out refinance, or a state that requires it: a full appraisal is typically required, paid out of pocket by the borrower, and non refundable if the loan does not close.
- Property has condition issues, such as needed repairs or unfinished flooring: the appraisal can come back conditioned on those repairs being completed before the loan can close.
| HELOC or strong equity/credit | Automated valuation model or waiver |
|---|---|
| Full first mortgage refinance | Traditional in person appraisal |
| VA cash out refinance | Traditional in person appraisal (required) |
| VA streamline (IRRRL) refinance | Typically no appraisal required |
| Property with condition issues | Appraisal, possibly conditioned on repairs |
Related questions
- the most common mortgage and home equity questions
- can I choose my own appraiser, use my own contact, or ask to avoid a specific appraiser
- do I Have to Pay for the Appraisal Out of Pocket, and Is It Refunded If My Loan Doesn't Close
- can I Reuse or Transfer an Appraisal I Already Paid For to a New Lender
- how much home equity you can access
- HELOC vs home equity loan vs cash-out refinance
Sources
- https://singlefamily.fanniemae.com/property-valuation/value-acceptance
- https://selling-guide.fanniemae.com/sel/b5-4.1-03/texas-section-50a6-loan-underwriting-collateral-and-closing-considerations
- https://www.va.gov/housing-assistance/home-loans/loan-types/cash-out-loan/
- https://www.consumerfinance.gov/rules-policy/regulations/1026/interp-19/
- https://www.consumerfinance.gov/ask-cfpb/how-much-does-it-cost-to-receive-a-loan-estimate-en-2003/
- https://ibuyer.com/blog/appraisal-required-repairs/
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.