Property Valuation
A Wisconsin 'drive-by' appraisal (Form 2055) is acceptable for some lenders for:
AAll refinance transactions
BLow-risk refinances where the lender has confidence in the property value from other data✓ Correct
CAll purchase transactions
DFHA and VA loans only
Explanation
An exterior-only (Form 2055) appraisal may be acceptable to some lenders for lower-risk refinance transactions where automated valuation data and other factors provide additional confidence in the value.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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