Refinance Mortgage Without Any Appraisal: Is It Possible?

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The article was contributed by Selena Cowell. She is mainly associated with MortgageFit Community since 2005. She is an author and a expert blogger who contributed a lots of articles on real estate, mortgage, refinance, home buyers tips, loan modifications and more on the web. 

Are you wondering whether some of the expenses like appraisal, inspection and title fees are wiped out while refinancing your mortgage? If so, then read the article to know whether appraisal required while refinancing. In this tough economic situation, most of the people are planning to refinance before they default on payment. Fortunately, though, mortgage rates are not only at all-time lows but now refinance programs do not require appraisals. Therefore, a large number of people can be benefited from refinancing as they can obtain an appraisal free loan. These loans are available through the FHA, VA, USDA and HARP programs.

Here are some of the programs that you can consider in order to refinance your mortgage without any appraisal:

1. VA IRRRL Mortgage Program:

The Veterans Administration designed a streamlined refinance for Veterans and people serving in the military on active duty through their Interest Rate Reduction Refinancing Loan (IRRRL) program. Generally, this particular refinance program for VA loans does not require an appraisal. You can refinance the loan even after not currently residing in the home.

According to the program, you can manage to include closing costs in your refinance. You can also obtain up to $6,000 in additional money to spend on energy efficiency improvements. If you’re looking for this type of loan, then you need to find lender who follows VA guidelines and does not require an appraisal.

2. FHA Streamline Refinancing:

FHA streamline loans are commonly known as IRRRL loans. Borrowers with FHA mortgages usually opt for FHA streamline loans for refinancing. Therefore, you can effortlessly manage to refinance your mortgage with the help of FHA streamline as well as include the closing costs. You have an option to choose a 30- or 15-year fixed mortgage or a 5-year adjustable rate mortgage.

Presently, the credit standards are not rigid from regular lending and borrowers are not required to get an appraisal. You can qualify for refinancing through FHA, only if you’re current on your existing mortgage. Therefore, refinancing can help to reduce your monthly payment.

3. HARP Loans: 

If your mortgage loan is sold either to Fannie Mae or Freddie Mac, then you can refinance your loan with the help of the Home Affordable Refinance Program (HARP). In order to qualify for the HARP loans, you’re not required to have set credit score or no minimum income requirement. Your property may not be appraised if you refinance the loan through HARP loans.

You can effortlessly manage to refinance your second home by using a HARP loan. But you need to be cautious while taking out a HARP loan as the lender may include additional requirements. Therefore, it is advisable to compare the rates before applying for refinancing.

It is definitely possible to refinance without any appraisal. Once you refinance on better terms, you can manage to pay off your debts with ease.


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