An appraisal waiver is offered by Fannie Mae's or Freddie Mac's automated underwriting system when its own data already supports the home's value. The waiver comes from the system, and a loan officer cannot grant one as a favor. Fannie and Freddie sit on enormous databases of prior appraisals and sales history. When the value looks well supported, the down payment or equity is strong, and the property is a fairly standard type, the system may return a waiver instead of requiring a fresh appraisal. Similar programs exist on some other loan types. When it happens, take the win: you skip the appraisal fee (often several hundred dollars, and increasingly collected up front since lenders do not want to float the cost on loans that never close), you save time, and a low appraisal can no longer derail your deal. Waivers show up most on lower loan-to-value files, rate-and-term refinances, and conventional loans. They are scarce on unique properties, higher-LTV purchases, jumbos, and other non-agency loans where the investor wants eyes on the collateral. You cannot count on one in advance, and you can always order a full appraisal anyway if you would rather have an independent read on value before committing. Confirm what is available for your scenario with your lender, since program rules change.