All of the above: the down payment, the data behind the property, and the strength of your file working together. When we submit your file to the automated underwriting system, the system checks Fannie Mae's or Freddie Mac's database of recent closed sales, including the structured appraisal data lenders have been reporting for years, and weighs everything at once: the down payment, the neighborhood, the property's price trend and sale history, plus your credit score and debt-to-income ratio. - A large down payment reduces the lender's risk if the value is slightly off. - Strong credit and a low DTI make you a cleaner file. - The property data has to support the price. When those line up, the system may offer to waive the traditional appraisal. A waiver is never promised, even for a strong borrower, and the lender can still require a full appraisal. But on a purchase with a hefty down payment, high credit score, and low DTI, waivers are not uncommon, so nothing about your situation is unusual. One more option: if you'd like an independent value opinion for your own comfort, you can order an appraisal even when one isn't required.