Value Acceptance Appraisals
Streamlining Homebuying: Fannie Mae's Value Acceptance and Value Acceptance with Property Inspection options – Faster Valuations Without the Hassle at The Commonwealth Group
In the fast-paced world of mortgage lending and real estate, few things can derail a home purchase faster than a drawn-out appraisal process. Delays, unexpected costs, and the stress of waiting for that all-important valuation report? They're all too common. But thanks to innovative programs from Fannie Mae, there's a brighter path forward for borrowers and lenders alike. Enter **Value Acceptance (“VA” ) and Value Acceptance + Property Inspection (VAPI)– two appraisal alternatives designed to speed up closings, cut costs, and provide certainty from day one. And you can count on The Commonwealth Group to assist you with understanding these valuable new processes.
As of 2025, these offerings have evolved with expanded eligibility, making them more accessible than ever. As a lender, understanding VA and VAPI could be your ticket to a smoother transaction for your customer.
What is Value Acceptance (VA)?
Imagine submitting a loan application and getting an instant green light on the property value – no appraisal required. That's the magic of Fannie Mae's Value Acceptance program. Launched as a data-driven alternative to traditional appraisals, VA leverages Fannie Mae's massive database in Collateral Underwriter® (CU) combined with smart analytics in Desktop Underwriter (DU) to assess risk and waive the full appraisal.
Here's how it works in simple terms:
The Trigger: When you run your loan through DU, it scans for a recent prior appraisal on the property (or similar ones nearby). If the data checks out, DU offers VA.
The Value: Fannie Mae accepts the contract price (for purchases) or your estimated value (for refinances) as the official property value.
What’s the catch?: Simply put, there isn’t one. No interior/exterior inspection or opinion of value needed – just accurate data from you, the lender.
This program shines for straightforward transactions, saving time and money while giving lenders "Day 1 Certainty" and relief from certain reps and warranties on value, condition, and marketability.
What is Value Acceptance + Property Inspection (VAPI)?
Now, take VA and add a layer of reassurance for higher-risk or higher-loan scenarios. That's VAPI, officially known as Value Acceptance + Property Data. It's not a full appraisal, but it does require a quick, focused Property Data Collection (“PDC”); essentially an inspection-lite where a trained collector visits the property to snap photos, sketch a floor plan, and note key characteristics like condition and features. No value opinion is formed; it's all about verifying eligibility.
The process is streamlined:
DU flags your loan as VAPI-eligible.
Order the PDC from a vetted third-party collector (appraiser recommended but not required – see full requirements at Fanniemae.com)
Submit the data (including photos and ANSI-standard floor plans) to Fannie Mae's Property Data API.
Get the value acceptance – and proceed to closing.
VAPI is ideal when DU needs a bit more intel on the property's current state, like in rural areas or for loans pushing higher loan-to-value (LTV) ratios. It's been a game-changer since its rollout, with Fannie Mae reporting over $2.8 billion in borrower savings across VA and VAPI programs through March 2025.
For borrowers, it's all about affordability and speed. Skip the $500+ appraisal fee, shave weeks off closing, and avoid surprises – especially in hot markets where properties fly off the shelf. VAPI adds peace of mind with a fresh condition check to confirm any structural related issues.
Eligibility and How to Get Started
Not every loan qualifies, but many one unit home transactions do. The basics:
Property: Single-family (including condos), not manufactured or co-ops.
Transactions: Purchases, limited cash-out refinances (up to 90% LTV), or cash-outs (up to 70%).
DU Requirement: Must get an "Approve/Eligible" recommendation.
Transaction Specific Exclusions: No gifts of equity, rental income reliance, or recent appraisals (within 120 days).
The Future of Home Valuations: Simpler, Smarter, and More Inclusive
Fannie Mae's VA and VAPI aren't just 2025 updates; they're a glimpse into a more equitable mortgage landscape. By blending big data with targeted inspections, they're reducing barriers for buyers in tight budgets or remote areas. As tech advances expect even more innovations from both Fannie Mae and The Commonwealth Group.
Flexibility Drives Profitability
At The Commonwealth Group we take very seriously our motto. By offering the latest in underwriting these new appraisal type, Commonwealth provide your company the flexibility to compete in the ever changing world of housing finance.
Today’s borrower demand fast service and price savings. Commonwealth offers your company both. Contact Martin Luplow at The Commonwealth Group today ( [email protected] ) for more information on what Commonwealth can do for your company.
West Beibers, CMB, AMP, CRU
Chief Executive Officer
The Commonwealth Group Companies