Waiver vs hybrid

Appraisal waiver or hybrid appraisal: what is the difference?

Both can mean no appraiser at your door. Only one of them ends with a signed appraisal report.

What is an appraisal waiver?

An appraisal waiver means the loan goes ahead with no appraisal at all, and Fannie Mae now calls this value acceptance.

Desktop Underwriter offers value acceptance on some loan files. For it to be considered, a prior appraisal of the house generally has to be found in Fannie Mae's Collateral Underwriter data.

When the lender takes the offer, Fannie Mae accepts the value estimate the lender submitted. No appraiser is engaged for that loan.

What is a hybrid appraisal?

A hybrid appraisal is a real appraisal report, written by an appraiser who works from data someone else gathered at the house.

A trained data collector visits and records the inside and outside. The appraiser then uses that data, plus other sources where needed, to develop and sign the value opinion on Form 1004 Hybrid or Form 1073 Hybrid for a condo.

Fannie Mae allows hybrids on purchases, limited cash out refinances and cash out refinances for existing one unit homes, including condos and units in a PUD.

Where does value acceptance plus property data fit?

It sits between the two: someone visits, but no appraiser writes a report.

With this option a trained collector records the interior and exterior to confirm the property is eligible. An appraisal is not required. The lender reviews the photos and details to confirm there are no safety, soundness or structural problems.

If the loan loses this option after the visit, Fannie Mae says the lender may in some cases hand the collected data to an appraiser for a hybrid appraisal instead.

Who decides which one your loan gets?

The automated underwriting system presents the options, and the lender chooses.

Desktop Underwriter issues messages listing what the loan file is eligible for. The lender may pick any option presented.

Fannie Mae also lists cases where the lender cannot use value acceptance and must order an appraisal. These include when the law requires one, when rental income from the property is used to qualify, and when the lender believes an appraisal is warranted based on what it knows about the property.

What changes for you as the borrower?

The biggest difference is whether a signed appraisal report exists for you to read.

A hybrid produces a full appraisal report, and the CFPB's Regulation B rule on appraisals covers your right to a copy of appraisals and other written valuations on a first lien home loan. With value acceptance alone, no appraisal is ordered for that loan.

Questions

Common questions

Is an appraisal waiver the same as a desktop appraisal?

No. A desktop appraisal is still an appraisal, signed by an appraiser who did not visit. A waiver, or value acceptance, means no appraisal is obtained for the loan.

Is there a price limit on appraisal waivers?

Yes, at Fannie Mae. Its Selling Guide section B4-1.4-10, updated June 3, 2026, excludes transactions where the purchase price or estimated value given to Desktop Underwriter is $1,000,000 or more.

Does a waiver mean nobody ever checked the house?

With plain value acceptance, there is no visit for that loan. The decision generally rests on a prior appraisal found in Fannie Mae's data. The property data version adds a visit but still no appraisal.

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