What are the requirements to receive an escrow waiver?
Waiver eligibility is dependent on several factors but generally, to qualify for an escrow waiver your loan must be a conventional loan (meaning Fannie Mae/Freddie Mac) and meet the following requirements:
Less than or equal to 80% Loan-to-value ratio
No delinquencies within the past 12 months, and depending on your investor, no 60-day delinquencies within the last 2 years
No loan modifications
No defaults on previous escrow waivers – this means if you previously had any escrow collection waived, you paid that item (tax or insurance) in a timely manner
No escrow disbursements scheduled in the upcoming 60 days
You cannot have a negative escrow balance
There may also be state-specific laws regarding when and how escrow waivers can be granted, so additional requirements may apply. Please contact us to confirm your loan's eligibility.
