Property Inspection Waiver (PIW) for Refinancing Your Home

A property inspection waiver (PIW) mortgage is a mortgage that is approved without a full appraisal report. Instead, PIW mortgages are approved through government-sponsored enterprises (GSE), Fannie Mae and Freddie Mac. These GSEs allow lenders to use available data to determine the market value of your property. As a result, a PIW mortgage does not rely on a newly appraised value.

You can save hundreds of dollars on a PIW mortgage since full appraisals usually take time and money to complete. Additionally, you can potentially avoid the risk of a new appraisal valuing your home lower than anticipated.

Do I Qualify for a PIW Mortgage?

There are specific criteria needed to qualify for a PIW Mortgage:

Your property must fall under one of two property types:

  • One-Unit Properties
  • Condominiums

Your property must be purchased as one of two purchase types:

  • Primary residences up to 80% of the home’s value
  • Secondary residences up to 80% of the home’s value

One of two refinance types must be chosen:

Limited Cash-out refinance:

  • Loan-to-Value (LTV) ratio needs to be 90% or less on both primary and secondary residences. In other words, there needs to be at least a 10% down payment on your home.
  • Investment properties require an LTV of 70%

Cash-out Refinance:

  • Primary residences require 70% LTV
  • Secondary residences and investment properties require up to 60% LTV

Pros & Cons of PIW Mortgage