Unlock A No-Appraisal Refinance To Save Time and Money On Your Refi

Refinancing your mortgage can unlock lower payments, shorten your loan term, or let you tap into equity with a cash-out refinance. But there’s one question that almost always comes up: do you need an appraisal to refinance? Many homeowners search for terms like refinance without appraisal or no appraisal refinance because the cost and delay of a full appraisal can feel unnecessary.

I get it. No one wants to order an appraisal—it’s an extra $600 to $2,000 out of pocket that you don’t want to spend, and it can delay your refinance by two to three weeks. That’s why no appraisal mortgage lenders and appraisal waiver refinance programs are so appealing.

But whether or not you need to order an appraisal depends on several factors. In many cases, yes, your lender will want an appraisal. But in others—especially with certain government-backed loans or streamlined refinance programs—you may be able to skip the step entirely. Let’s break it down.

Do You Need an Appraisal to Refinance Your Home?

In many situations, yes—an appraisal is part of the refinance process. Your home’s value determines your equity, which is the gap between what the property is worth and what you still owe. That equity drives what kinds of loans and interest rates you can qualify for, and how much you’re allowed to borrow. If you’re looking at a cash‑out refinance, an appraisal sets the ceiling on how much cash you can take out.

In contrast, there are other cases where you can refinance without an appraisal—particularly if you’re not tapping into equity. With a straightforward rate‑and‑term refinance, streamlined government programs, and even some conventional loan appraisal waivers, the need for a new appraisal can be eliminated. It all depends on your lender’s underwriting system and whether an appraisal waiver is granted.

Why Lenders Usually Care About Appraisals

A home appraisal is an independent assessment of your property’s fair market value. It considers your home’s size, condition, features, and location compared against recent neighborhood sales.

From the lender’s perspective, this isn’t just a formality. It’s protection. Imagine you’re refinancing a $300,000 mortgage with a new lender. If the appraiser comes back and values your home at just $200,000, there’s now a $100,000 gap. If you default and the home goes into foreclosure, the lender has little chance of recovering that full amount.

What many borrowers don’t realize is that the lender initially relies on your stated opinion of value. If you owe $200,000 and claim your property is worth $400,000, the lender will treat that $400,000 value as fact—until an appraisal comes along to test that assumption. That’s why lenders often insist on third‑party verification, especially for a cash‑out refinance. It bridges the gap between what you believe your home is worth and what the market will actually support.

How Appraisals Affect Your Refinance Options

Your appraisal doesn’t just decide if the refinance goes through. It also impacts:

• Equity calculations. Equity is the difference between what your home is worth and what you owe. The higher the appraised value, the more equity you have—and the more options you unlock.

• Loan type and terms. For a cash-out refinance, your appraisal directly determines how much money you can take out. For rate-and-term refinances, it impacts your loan-to-value ratio (LTV) and your ability to remove mortgage insurance.

• Interest rate eligibility. Lenders often reward lower LTVs with better pricing. A higher valuation could mean a lower rate.

This is why, even when it’s possible to do a refinance without appraisal, some borrowers actually benefit from ordering one. A new valuation can confirm appreciation and help eliminate PMI or qualify for improved loan terms.

When a No-Appraisal Refinance Works

Not every refinance requires a new appraisal. Some programs and lender tools allow you to skip it. Borrowers often ask, do conventional loans require appraisal? The answer: not always. About 15-25% of all conventional loans get an appraisal waiver. Where you live (and whether average home prices are increasing year over year) can have a big impact on whether you receive an appraisal waiver.

When you do land an appraisal waiver, the refinance process feels dramatically smoother. You can save as much as $2,000 on your transaction and start saving weeks earlier because you don’t have to schedule the appraisal, wait for the appraiser to come out, hope the report hits the value you need, and then dispute it if it doesn’t. It’s truly one of the fastest, cleanest ways to close on a refinance.

Conventional Loan Appraisal Waivers

Fannie Mae and Freddie Mac allow lenders to issue appraisal waivers through their automated underwriting systems. To qualify, you’ll typically need:

• A credit score of at least 740

• A strong, stable income history

• Typically at least 20% equity, though borrowers have been eligible for an appraisal waiver with as little as 5% down.

• It's an owner-occupied property

These waivers are usually limited to rate-and-term or limited cash-out refinances—not full cash-out transactions. Even then, Freddie Mac is more restrictive than Fannie Mae. If an appraisal is already on file from a previous transaction, your chances of approval improve.

FHA Streamline Refinance

The FHA Streamline program lives up to its name. It’s designed to reduce paperwork and help FHA borrowers lower their payments quickly. Appraisals are usually not required, since there’s no minimum equity rule. For many homeowners, this program feels like the perfect refinance mortgage without appraisal option.

VA IRRRL (Streamline Refinance)

VA borrowers have access to one of the easiest refinance tools available—the Interest Rate Reduction Refinance Loan (IRRRL). Appraisals are often waived, especially for simple rate-and-term refinances. This makes it one of the most popular no appraisal refinance programs for veterans. With an IRRRL, you can often lower your rate, reduce monthly payments, or switch from an adjustable-rate to a fixed-rate loan with minimal documentation. Closing costs can be rolled into the new loan, and occupancy requirements are simpler than other refinance products. Learn more about how this program works on our VA IRRRL page.

USDA Streamline Refinance

For homeowners in rural areas with USDA loans, the USDA Streamline option allows refinancing without an appraisal. You’ll need at least 12 months of payment history and no late payments within the last six. Cash-out is not permitted, but lower rates and easier qualification often make it worthwhile.

The USDA even offers a Streamline-Assist program with fewer documentation requirements—no appraisal, no credit check, and minimal income verification. This is one of the clearest examples of a true refinance no appraisal pathway.

Automated Valuation Models (AVMs)

Some lenders use automated valuation models—computer algorithms that pull data from public records and listing sites. While AVMs can be accurate in certain neighborhoods, they aren’t universally accepted. They’re more common for conventional refinances under Fannie Mae or Freddie Mac, with restrictions on property type and LTV ratios. They serve as another way to achieve a mortgage refinance without appraisal when conditions line up.