Getting a mortgage refinance usually requires an appraisal. However, if you have a Federal Housing Administration (FHA), Department of Veterans Affairs (VA), or U. S. loan, you may be exempt from this condition.
There are also loan programs that don't require an appraisal during the home loan process. Appraisal exemptions are allowed for some conventional loans and some independent second-lien mortgages. Most mortgage and home loan programs require appraisals, but if you buy a home through the Department of Housing and Urban Development (HUD), you may qualify for an FHA mortgage without an appraisal. A no-appraisal refinance loan is sometimes referred to as an unappraised mortgage, but the reasons for offering each of them without appraisal are different.
Refinancing can offer several benefits, such as lower payments, lower mortgage rates, or moving from an adjustable-rate mortgage to a fixed-rate mortgage for greater stability. The borrower makes monthly or biweekly payments on the refinanced mortgage just as they did with the original mortgage. Victoria Araj is a section editor for Rocket Mortgage and has held positions in mortgage banking, public relations and more during her more than 15 years with the company.