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Can I get a home equity loan without an appraisal?

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You may be able to get a home equity loan without a new appraisal — but if you can’t there are a few alternatives to consider.

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When it comes to borrowing money, homeowners are at an advantage right now. Rates on personal loans, mortgage loans and other lending products are higher than they were just a couple of years ago — but the unusual economic climate that led to those high rates has also led the average homeowner to have hefty amounts of equity in their home.

With homeowners having an average of nearly $200,000 in tappable home equity at their fingertips, they’re able to borrow against it for just about any purpose. For example, your home equity can be borrowed against to consolidate debt, make home renovations, pay for college or education expenses or cover other big expenses. And, what’s more, home equity loans typically come with much lower interest rates than what’s offered on credit cards or other lending products.

That said, there are some hurdles to jump through when borrowing from your home’s equity, like the appraisal process. Much like buying a home, obtaining a home equity loan traditionally involves a thorough appraisal of the property’s value. But is it possible to secure a home equity loan without undergoing the appraisal process? And what are the alternatives? 

Find the top home equity loan rates you could qualify for here.

Can I get a home equity loan without an appraisal?

Traditional home equity loans involve borrowing a lump sum against the equity in your home. To determine the loan amount, lenders typically require a professional appraisal to assess the current market value of your property. This appraisal helps ensure that the loan amount aligns with the property’s worth and the lender’s risk tolerance.

But while traditional lenders generally require an appraisal for home equity loans, some financial institutions may offer alternatives that don’t involve a full appraisal process. However, keep in mind that these alternatives might come with certain conditions or limitations. Some traditional appraisal alternatives may include:

Automated valuation models (AVMs)

Some lenders use automated valuation models, which rely on data algorithms and public records to estimate a property’s value. AVMs are quicker and more cost-effective than traditional appraisals, but they may not be as accurate — so the estimate on your home could be much lower (or higher) than expected. And, if that happens, it can mean complications with the home equity lending process.

Explore your home equity loan options online here.

Desktop appraisals

Another option is a desktop appraisal, where an appraiser assesses your property remotely using available data, photographs and other information. While faster than a traditional appraisal, desktop appraisals may not capture all nuances of a property, either.

Loan-to-value (LTV) ratio

Some lenders may rely on the loan-to-value ratio based on tax assessments or recent purchase prices instead of a full appraisal. This approach simplifies the process but, again, it may not provide a precise valuation.

FHA-insured home equity conversion mortgages (HECMs)

While limited to seniors aged 62 and older, FHA-insured HECMs, also known as reverse mortgages, are a type of home equity loan that may not require a traditional appraisal. These loans allow homeowners to convert a portion of their home equity into cash without making monthly mortgage payments. However, the requirements for this type of loan can vary. 

Alternative home equity solutions to consider

If you find that obtaining a traditional home equity loan without an appraisal is challenging, it may be worth it to consider exploring alternative financial solutions to tap into your home’s equity:

  • Home equity line of credit (HELOC): A HELOC is a flexible line of credit that allows you to borrow against your home’s equity as needed. Some lenders may offer HELOCs without requiring a full appraisal, making them a more accessible option for certain homeowners.
  • Cash-out refinancing: Cash-out refinancing involves replacing your existing mortgage with a new one for a higher amount than you currently owe. The excess funds can be used as needed. While a new appraisal is typically required, it may offer a way to access more substantial sums of money. That said, mortgage rates are high right now, and if you currently have a low interest rate on your mortgage, it may not be worth taking this route.

The bottom line

While obtaining a home equity loan without an appraisal may be challenging with traditional lenders, various alternatives and creative solutions exist. If you would prefer to take this route, it’s crucial to explore different options, compare terms and assess your financial goals to determine the best way to leverage your home’s equity. And, if you still aren’t sure, it may be helpful to consult with financial professionals and lenders to find the most suitable solution for your unique circumstances.



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Tajikistan nationals with alleged ISIS ties removed in immigration proceedings, U.S. officials say

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When federal agents arrested eight Tajikistan nationals with alleged ties to the Islamic State terror group on immigration charges back in June, U.S. officials reasoned that coordinated raids in Los Angeles, New York and Philadelphia would prove the fastest way to disrupt a potential terrorist plot in its earliest stages. Four months later, after being detained in Immigration and Customs Enforcement (ICE) facilities, three of the men have already been returned to Tajikistan and Russia, U.S. officials tell CBS News, following removals by immigration court judges. 

Four more Tajik nationals – also held in ICE detention facilities – are awaiting removal flights to Central Asia, and U.S. officials anticipate they’ll be returned in the coming few weeks. Only one of the arrested men still awaits his legal proceeding, following a medical issue, though U.S. officials speaking on the condition of anonymity to discuss the sensitive proceedings indicated that he remains detained and is likely to face a similar outcome. 

The men face no additional charges – including terrorism-related offenses – with the decision to immediately arrest and remove them through deportation proceedings, rather than orchestrate a hard-fought terrorism trial in Article III courts, born out of a pressing short-term concern about public safety. 

Soon after the eight foreign nationals crossed into the United States, the FBI learned of the potential ties to the Islamic State, CBS News previously reported. The FBI identified early-stage terrorist plotting, triggering their immediate arrests, in part, through a wiretap after the individuals had already been vetted by U.S. Customs and Border Protection, law enforcement sources confirmed to CBS News in June. 

Several months later, their removals following immigration proceedings mark a departure from the post-9/11 intelligence-sharing architecture of the U.S. government. 

Now facing a more diverse migrant population at the U.S.-Mexico border, a new effort is underway by the Department of Homeland Security, Department of Justice and the Intelligence Community to normalize the direct sharing of classified information – including some marked top-secret – with U.S. immigration judges. 

The more routine intelligence sharing with immigration judges is aimed at allowing U.S. immigration courts to more regularly incorporate derogatory information into their decisions. The endeavor has led to the creation of more safes and sensitive compartmented information facilities – also known as SCIFs – to help facilitate the sharing of classified materials. Once considered a last resort for the department, Secretary Alejandro Mayorkas has sought to use immigration tools, in recent months, to mitigate and disrupt threat activity.

The immigration raids, back in June, underscore the spate of terrorism concerns from the U.S. government this year, as national security agencies point to a system now blinking red in the aftermath of the Oct. 7 attacks by Hamas on Israel, with emerging terrorism hot spots in Central Asia. 

A joint intelligence bulletin released this month, and obtained by CBS News, warns that foreign terrorist organizations have exploited the attack nearly one year ago and its aftermath to try to recruit radicalized followers, creating media that compares the October 7 and 9/11 attacks and encouraging “lone attackers to use simple tactics like firearms, knives, Molotov cocktails, and vehicle ramming against Western targets in retaliation for deaths in Gaza.”

In May, ICE arrested an Uzbek man in Baltimore with alleged ISIS ties after he had been living inside the U.S. for more than two years, NBC News first reported. 

In the past year, Tajik nationals have engaged in foiled terrorism plots in Russia, Iran and Turkey, as well as Europe, with several Tajik men arrested following March’s deadly attack on Crocus City Hall in Moscow that left at least 133 people dead and hundreds more injured. 

The attack has been linked to ISIS-K, or the Islamic State Khorasan Province, an off-shoot of ISIS that emerged in 2015, founded by disillusioned members of Pakistani militant groups, including Taliban fighters. In August 2021, during the U.S. military withdrawal from Afghanistan, ISIS-K launched a suicide attack in Kabul, killing 13 U.S. service members and at least 170 Afghan civilians. 

In a recent change to ICE policy, the agency now recurrently vets foreign nationals arriving from Tajikistan, Uzbekistan and other Central Asian countries, detaining them while they await removal proceedings or immigration hearings.

Only 0.007% of migrant arrivals are flagged by the FBI’s watchlist, and an even smaller number of those asylum seekers are ultimately removed. But with migrants arriving at the Southwest border from conflict zones in the Eastern Hemisphere, posing potential links to extremist or terrorist groups, the White House is now exploring ways to expedite the removal of asylum seekers viewed as a possible threat to the American public. 

“Encounters with migrants from Eastern Hemisphere countries—such as China, India, Russia, and western African countries—in FY 2024 have decreased slightly from about 10 to 9 percent of overall encounters, but remain a higher proportion of encounters than before FY 2023,” according to the Homeland Threat Assessment, a public intelligence document released earlier this month. 

A senior homeland security official told reporters in a briefing Wednesday, that the U.S. is engaged in an “ongoing effort to try to make sure that we can use every bit of available information that the U.S. government has classified and unclassified, and make sure that the best possible picture about a person seeking to enter the United States is available to frontline personnel who are encountering that person.”

Approximately 139 individuals flagged by the FBI’s terror watchlist have been encountered at the U.S.‑Mexico border through July of fiscal year 2024. That number decreased from 216 during the same timeframe in 2023. CBP encountered 283 watchlisted individuals at the U.S.-Canada border through July of fiscal year 2024, down from 375 encountered during the same timeframe in 2023.

“I think one of the features of the surge in migration over recent years is that our border personnel are encountering a much more diverse and global population of individuals trying to enter the United States or seeking to enter the United States,” a senior DHS official said. “So, at some point in the past, it might have been primarily a Western Hemisphere phenomenon. Now, our border personnel encounter individuals from around the world, from all parts of the world, to include conflict zones and other areas where individuals may have links or can support ties to extremist or terrorist organizations that we have long-standing concerns about.”

In April, FBI Director Christopher Wray warned that human smuggling operations at the southern border were trafficking in people with possible connections to terror groups.

“Looking back over my career in law enforcement, I’d be hard-pressed to think of a time when so many different threats to our public safety and national security were so elevated all at once, but that is the case as I sit here today,” Wray, told Congress in June, just days before most of the Tajik men were arrested.

The expedited return of three Tajiks to Central Asia required tremendous diplomatic communication, facilitated by the State Department, U.S. officials said.  

Returns to Central Asia routinely encounter operational and diplomatic hurdles, though regular channels for removal do exist. According to agency data, in 2023, ICE deported only four migrants to Tajikistan.

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Here Comes the Sun: Ralph Macchio and more

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Actor Ralph Macchio sits down with Lee Cowan to discuss the sixth and final season of “Cobra Kai.” Then, Tracy Smith visits The Broad museum in Los Angeles to learn about Mickalene Thomas’ exhibition “All About Love.” “Here Comes the Sun” is a closer look at some of the people, places and things we bring you every week on “CBS Sunday Morning.”

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