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Homeowners with high-value properties have long faced additional hurdles in securing financing. For those seeking a Home Equity Line of Credit (HELOC), an often overlooked option—appraisal waivers—can significantly simplify the process. Especially for homes valued above $1.5 million, understanding when and how appraisal waivers apply can mean faster access to capital and reduced costs.
What Is an Appraisal Waiver?
An appraisal waiver allows a borrower to bypass the traditional appraisal requirement in a mortgage or HELOC transaction. Instead of hiring a third-party appraiser to assess the home’s value, the lender relies on automated valuation models (AVMs) or proprietary data to determine home equity.
Key Benefits:
- Faster closings: No waiting on a third-party appraiser
- Reduced costs: Avoid $400–$1,000+ appraisal fees
- Streamlined documentation: Less paperwork and coordination
Can You Get an Appraisal Waiver on a Home Over $1.5M?
Historically, appraisal waivers were mostly reserved for conforming loans under standard limits (i.e., under $726,200 in most areas for 2025). However, recent changes in lender risk models and valuation technologies have expanded eligibility—even for luxury properties.
When It’s Possible:
- The lender has sufficient prior valuation data on the property
- The loan-to-value (LTV) ratio is conservatively low
- The borrower has a strong credit profile
- The lender is approved to use automated underwriting systems (AUS) like Fannie Mae’s Desktop Underwriter or Freddie Mac’s Loan Product Advisor
Tip: Ask your lender during the HELOC application process if your property qualifies for an appraisal waiver based on AVM scores or internal models.
Eligibility Criteria for Appraisal Waivers on High-Value Homes
While eligibility varies by lender, homes over $1.5 million can still qualify if certain conditions are met:
| Requirement | Typical Guidelines |
| Property Type | Primary residences often prioritized |
| Loan Amount | Typically under 70–75% LTV for luxury homes |
| Credit Score | 700+ is usually preferred |
| Existing Valuations | Previous appraisal or AVM data within last 3–5 years helpful |
| Automated Underwriting | Must pass AUS systems that support waiver options |
When an Appraisal Is Still Required
Even for affluent borrowers, appraisal waivers may be denied if:
- The property is unique or atypical for the area (e.g., ultra-modern designs, historic homes)
- The market is volatile or lacks sufficient comparable sales
- The home has been recently renovated or expanded without public records updates
- You’re seeking maximum LTV, reducing the lender’s risk tolerance
How to Maximize Your Chances of Getting a Waiver
- Apply through a lender that supports AUS appraisal waivers
- Maintain excellent credit and low existing debt
- Ensure your property’s title, public records, and tax assessments are up to date
- Avoid over-leveraging your home equity—aim for conservative borrowing
FAQ: Appraisal Waivers for High-Value HELOCs
Are all lenders required to offer appraisal waivers?
No. Only some lenders use AUS systems capable of granting appraisal waivers. Always ask before applying.
Can I appeal if my waiver request is denied?
Typically, no. If the AUS doesn’t offer a waiver, you must proceed with a full appraisal or reapply under different terms.
Are appraisal waivers available for investment or second homes over $1.5M?
Rarely. These property types usually require traditional appraisals due to higher risk.
Read Next: Related Topics You’ll Love
By understanding the nuances of appraisal waivers, especially for homes valued above $1.5 million, you can streamline your HELOC application and reduce unnecessary costs. With the right lender and a strong financial profile, you may be eligible to bypass traditional valuation hurdles altogether.
Unlock Your Home Equity with Figure
- Approval in 5 minutes. Funding in as few as 5 days
- Borrow $20K-$400K
- Consolidate debt or finance home projects
- Fastest way to turn home equity into cash
- 100% online application
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
