If you have been told your loan might not require a traditional appraisal, you have run into what used to be called an appraisal waiver. As of September 3, 2025, Fannie Mae retired that term and now uses value acceptance instead. The name changed, and the programs around it have expanded, so it is worth understanding what these options actually are. As an appraiser, my goal here is not to tell you what to do or what your home is worth. It is to explain the landscape clearly so you can recognize which path your transaction is on and ask good questions.
Let me walk through it the way I would explain it to someone sitting across my desk.
What changed, and what the terms mean now
For years, lenders could sometimes accept a property’s value without ordering a full appraisal, and that was commonly called an “appraisal waiver.” In September 2025, Fannie Mae replaced that phrase with value acceptance, because the older term implied an appraisal was the default that was being skipped. The new language describes the process more accurately: the lender submits a value, and the program accepts it when the data and modeling support doing so for an eligible loan. If you still see “appraisal waiver” in older articles or conversations, people are almost always describing what is now called value acceptance.
The programs have also grown. In the first quarter of 2025, the eligible loan-to-value ratio for value acceptance on primary residence and second-home purchases increased from 80 percent to 90 percent, which means more transactions can now qualify.
One thing to keep in mind before we go further: these are Fannie Mae and Freddie Mac programs. Government loans, such as FHA and VA, follow their own appraisal rules, so if you are using one of those, value acceptance may not apply to your transaction.
The options, in plain terms
Think of these as a spectrum, running from no property visit at all to a full traditional appraisal.
- Value acceptance. For eligible transactions, the lender-submitted value is accepted with no appraisal required. This relies on data and modeling rather than a visit to the property.
- Value acceptance + property data. There is no traditional appraisal, but a trained third-party data collector visits the property to document the interior and exterior. That information is submitted in a standardized format. The collector gathers facts; they do not develop an opinion of value.
- Automated Collateral Evaluation (ACE) and ACE + Property Data Report (PDR). These are Freddie Mac’s comparable programs. ACE uses data and models, and ACE + PDR adds an on-site property data collection step.
- Desktop, hybrid, and traditional appraisals. When an appraisal is part of the loan, it can be a traditional appraisal (an appraiser inspects the property in the usual way), a desktop appraisal (completed from property data and records), or a hybrid appraisal (the property visit and the appraiser’s analysis are handled separately). In each case, the appraiser develops an independent, impartial opinion of value.
How the path is decided
Here is a point that surprises a lot of buyers: you do not choose your path, and neither does your agent. Eligibility is determined through the lender’s automated underwriting on a loan-by-loan basis, using the data available for the property and the specifics of your loan. Factors like your loan-to-value ratio and how much comparable data exists for the property influence which options are offered.
That is simply how the system works. It is helpful to know so you are not caught off guard when a lender tells you no appraiser will be visiting, or when a data collector schedules a visit even though no traditional appraisal is being performed.
What each method does and does not do
It helps to understand the trade-offs factually, without treating any option as good or bad.
Value acceptance and the automated programs are built for speed and lower upfront cost. They lean on data and modeling. By design, they do not include an appraiser physically walking the property and forming an independent opinion of value.
A traditional appraisal does include that independent, in-person analysis. An appraiser observes the property, researches the local market, and develops a supportable conclusion. It generally takes more time and carries a fee.
Neither is universally “better.” They answer the lender’s need in different ways, and the right fit depends on the transaction, which is why the program eligibility is decided case by case rather than by preference.
What a homebuyer can reasonably do
The most useful posture is to understand your situation rather than try to steer the outcome. A few practical steps:
- Ask your lender which path applies. They can tell you whether your loan is using value acceptance, value acceptance + property data, or a full appraisal, and what that means for your timeline.
- Understand the basis for the value. If you are moving forward without a traditional appraisal, it is reasonable to ask how the value was determined and what supports it. You are entitled to understand the figure your loan relies on.
- Keep accurate records. If you own the property and have completed improvements, having documentation of what was done and when, including permits where applicable, gives an appraiser or data collector accurate, factual information to work from.
- Know your options. If you have questions about the valuation method on your loan, you can ask your lender what the choices are, including whether a traditional appraisal is part of them.
Notice that none of this is about influencing a number. The value, when an appraisal is involved, is the appraiser’s independent and impartial conclusion. Your role is to understand the process, not to push it in a direction.
A final thought
Value acceptance and its related programs are part of a broader shift toward using data and technology to confirm a property’s value, paired with clearer language to describe it. For a homebuyer, the practical takeaway is straightforward. Learn which valuation path your loan is on, ask your lender how the value was reached, and recognize that an appraisal, when it is part of the deal, provides an independent and impartial opinion rather than a number anyone can steer.
The more you understand how these pieces fit together, the more confident you can be in your decisions. And as with most things in real estate, the guidelines keep evolving, so it is always worth asking what is current.