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under harp2,when is a appraisal required

  • April 18 2012 - Minneapolis
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Answers (3)

For Freddie Mac loan, they use something called HVE (it is their value estimate), and then grade their own HVE for confidence level.   If your loan gets an HVE value, and an acceptable confidence level, that HVE value will be used for your file and most participating lenders will use that value.   If you don't like the HVE value, you can then choose to have an appraisal, and use that value for your loan (IF and only if the lender allows the use of full appraisal at the proposed Loan to Value).

If you don't get an HVE value (common on condos), or an unacceptable confidence level, then you must have an apprasal done, again, provided the lender will allo the use of the full appraisal at the proposed Loan to Value.

The Fannie Mae system is going to become very similar to this soon, so I won't go into any detail on the existing method since the change is pending.   The desktop underwriter process is going to be overhauled on April 28, so the answer today is going to be a different answer in 10 days.
  • April 18 2012
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All depending on if the system can offer a streamlined property fieldwork recommendation if not that is when an appraisal is required.  Or if Desktop Underwriter could not verify the submitted subject property address for this transaction is when an appraisal is required.  Basically, if the system does not like the value the originator entered.
  • April 18 2012
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There are a ton of different factors. Biggest are loan amount vs appraised value. Second one is the housing market in the state or city you live in. Third is your debt to income ratio. All these are determining factors if "Desktop Underwriter" likes the file
  • April 18 2012
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