A traditional home appraisal costs between $314 and $424 on average, according to Angi, a home services marketplace, and that’s before accounting for the one to three weeks it typically takes from scheduling to final report, plus the requirement that you be available for a stranger to walk through your home. Several lenders now skip that step entirely, relying on automated valuation models (AVMs) — algorithms that estimate your home’s value using public records, comparable sales and property data — to underwrite your loan instead. The result: faster funding on home equity loans and HELOCs, lower upfront costs and a fully digital process. Not every borrower qualifies, and not every property works with an AVM, but if you do, the experience is smoother.
We evaluated lenders based on whether they explicitly use AVMs or automated valuation methods to waive or replace the traditional in-person appraisal, verified from each lender’s own website. From there, we assessed published APR range, max CLTV, minimum credit score, annual fee, loan amounts, funding speed, fee structure and state availability. We gave additional weight to lenders with transparent disclosure pages and explicit confirmation that appraisal isn’t required in most or all cases.
How to compare no-appraisal home equity loans and HELOCs
Not all no-appraisal products are created equal. Here’s what to look at when you compare:
What “no appraisal” actually means. Some lenders waive the appraisal entirely using an AVM; others may still require a desktop or drive-by appraisal if the AVM doesn’t produce a confident enough result. Ask the lender directly what happens if their automated tool can’t value your property.
APR and rate type. Most HELOCs carry variable rates, tied to the prime rate. Figure, Rate and Achieve offer fixed-rate options — worth considering if you want predictable payments.
Max CLTV. How much of your home’s value can you borrow against? Limits here range from 85% to 90%.
Origination fees. Several lenders offset the waived appraisal fee with an origination fee (up to 4.99%). Calculate total cost — a low rate with a 4.99% origination fee can cost more than a higher rate with no origination fee.
Annual fee. PenFed charges $99 per year; Connexus, Figure and Better charge none. Rate’s and Achieve’s annual fees aren’t listed on their websites — ask directly before applying.
State availability. Several lenders are unavailable in certain states. Confirm eligibility for your property before applying.
What is a no-appraisal home equity loan?
A no-appraisal home equity loan — or no-appraisal HELOC — is a second mortgage where the lender skips the traditional in-person, interior-inspection appraisal and instead uses an alternative method to value your property. The most common alternative is an automated valuation model (AVM): software that analyzes public records, recent comparable sales, tax assessments and property data to produce an estimated market value.
The phrase “no appraisal” is slightly misleading. Your home is still valued, the lender just doesn’t send someone to walk through it. There are a few valuation methods lenders use instead:
AVM. Fully algorithmic, instant. Works best in dense markets with lots of comparable sales data. No fee to the borrower with most lenders.
Desktop appraisal. A human appraiser reviews records, MLS listings and photos remotely, no physical visit. Faster and less expensive than a full appraisal.
Drive-by or exterior inspection. An appraiser views the property from the street only. More limited than a full appraisal.
Recent appraisal on file. Some lenders accept a full appraisal completed within the past 60–180 days.
Pros and cons of no-appraisal home equity loans
Pros
Faster funding — often five to 10 days vs. 30–60 for traditional home equity loans
Lower upfront costs — no $300–$600 appraisal fee
No need to prep your home for an inspector
Fully digital process with most lenders
Cons
AVM may undervalue your home, reducing your borrowing limit
AVM eligibility isn't guaranteed — your property has to pass the confidence threshold
May come with higher origination fees or rates to offset lender risk
Non-standard properties, rural areas and homes with recent major upgrades may not work well with AVMs
Compare other home equity and HELOC lenders
Use our tool to see estimated rates from top lenders based on your location and financial details. Select whether you’re looking for a home equity loan, HELOC or cash-out refinance. Enter your ZIP code, credit score and information about your current home to see your personalized rates.
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How to qualify for a no-appraisal home equity loan or HELOC
Appraisal waivers aren’t available to everyone. Lenders are more likely to use an AVM — and waive the traditional appraisal — if you meet these criteria:
Strong credit score. Most lenders set a minimum of 600–640, but 700+ gives you the best shot at a waiver and a better rate.
Sufficient equity. You’ll typically need at least 15–20% equity remaining after the loan. Most lenders cap CLTV at 85–90%.
Loan amount under $400,000. Several lenders explicitly require a full appraisal above that amount even if they offer AVM-based approvals for smaller ones.
Standard property type. Single-family homes and condos in suburban or urban markets work best. Rural properties, non-standard homes and manufactured housing are harder to value algorithmically.
Data-rich neighborhood. AVMs work by comparing your property to recent nearby sales. If there aren’t enough comparables, the AVM may not produce a confident enough estimate.
How to apply for a no-appraisal home equity loan or HELOC
Check your equity and credit. Estimate your home’s current value, subtract your mortgage balance and check your credit score. This tells you roughly how much you can borrow and which lenders you’re likely to qualify with.
Compare lenders. Look at APR range, rate type (fixed vs. variable), origination fees, annual fee, CLTV limits and state availability. Factor all fees into your total cost comparison.
Apply online. All six lenders here have fully digital applications that take minutes to complete.
Upload documents promptly. Income verification, mortgage statements and ID are typically required. Some lenders (Better, Rate) explicitly tie their fastest timelines to documents submitted within 24 hours.
Review your loan estimate and close. If the AVM values your home successfully, you’ll receive an offer. Review the terms, close online or with a remote notary and receive funds.
Alternatives to no-appraisal home equity loans
Traditional HELOC or home equity loan. If you have time and a non-standard property, a traditional appraisal may help you access more equity at a lower rate.
Cash-out refinance. This replaces your first mortgage with a new, larger loan and gives you the difference in cash. It requires an appraisal but may offer a lower rate if market rates are favorable.
Personal loan.Personal loans can be unsecured, no appraisal, no home equity required — but typically higher interest rates and lower loan limits.
Home equity investment (HEI).HEI companies like Hometap or Point give you a lump sum in exchange for a share of your home’s future appreciation — no monthly payments and no appraisal required.
Frequently asked questions
No. Your home is still valued — the lender just uses an AVM or desktop appraisal instead of sending a licensed appraiser inside. If the AVM doesn't produce a confident enough result for your property, the lender may require a traditional appraisal anyway.
Yes, they're legitimate products from licensed lenders. The main trade-off is that an AVM may undervalue your property, resulting in a lower borrowing limit than you'd get with a full appraisal. That's a financial consideration, not a safety issue.
Some lenders allow it. Better explicitly offers no-appraisal HELOCs on second homes and investment properties. Connexus allows HELOCs and home equity loans on second homes (at least 50 miles from your primary residence) without requiring an appraisal in most cases. Figure also lends on second homes and some investment properties.
Most lenders offer five to 10 business day funding for AVM-eligible loans where documents are submitted quickly. Figure and Rate cite as few as five days. Achieve cites as few as seven business days. Better's One Day HELOC targets a decision within 24 hours, with cash in about seven days.
No. PenFed states it will attempt to establish value via an independent automated method first — but if that method is unsuccessful or the value is insufficient for the amount requested, a full appraisal will be required regardless of CLTV. The waiver is an attempt, not a guarantee.
Megan B. Shepherd is a personal finance expert and editor for loans and insurance at Finder.
Her personal finance expertise has been featured on Forbes, Nasdaq, MediaFeed, Fox News, Time, Reviews.com, and carinsurance.com, adding invaluable information related to personal loans, financial strategies and smart borrowing tactics.
Megan graduated from the University of Texas at Dallas with a BS in Business Administration with an entrepreneurial focus. She's worked as a certified financial adviser and has earned certificates of completion from A.D. Banker & Company.
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