What ACE+ PDR Means for Your Mortgage
ACE+ PDR stands for Automated Collateral Evaluation Plus Property Data Report. This is Fannie Mae's way of letting you skip the traditional appraisal process on certain loans. Instead of waiting for an appraiser to visit your property, your lender uses automated valuation technology and a simpler property inspection.
The system works by analyzing your loan application data through Fannie Mae's Loan Product Advisor. If the automated system determines your loan meets specific risk criteria, you'll receive an ACE+ PDR "offer." This means Fannie Mae is willing to accept either the purchase price (for purchases) or an estimated value (for refinances) without requiring a full appraisal.
Your lender still needs to verify the property's condition and marketability through a Property Data Report. This is a less detailed inspection than a full appraisal, but it ensures the property meets basic standards and matches the information in your loan file.
Eligibility Requirements You Must Meet
Your property must be a single-family home that you'll use as either your primary residence or second home. Investment properties don't qualify for ACE+ PDR. The property also cannot be a manufactured home, cooperative, or sit on leased land.
Loan-to-value limits depend on your loan purpose and how you'll use the property. For purchases, you can borrow up to normal program limits regardless of whether it's your primary home or second home. For no-cash-out refinances, you're limited to 90% LTV on both primary residences and second homes.
Cash-out refinances have tighter restrictions. Primary residences max out at 70% LTV, while second homes are limited to 60% LTV. These limits apply to your total loan-to-value ratio if you have multiple mortgages on the property.
The property value or purchase price cannot exceed $1,000,000. This applies to the total value, not your loan amount. So if you're buying a $1,200,000 house with a large down payment, you won't qualify for ACE+ PDR even if your loan amount is under $1,000,000.
Documents Your Lender Will Need
Your lender must obtain a Property Data Report from a qualified property data collector. This person inspects the property and completes specific forms documenting its condition, but they don't provide a value opinion like an appraiser would.
The PDR must include photographs of the property's exterior and interior, along with details about the property's condition and any needed repairs. Your lender will also need to submit specific data points to Fannie Mae's system to confirm PDR eligibility.
If you're refinancing, your lender needs written procedures for how they establish the estimated property value. They might use your estimate, an automated valuation model, or online valuation tools. They cannot manipulate this value to help you qualify for ACE+ PDR or avoid mortgage insurance.
Why Fannie Mae Created These Rules
The ACE+ PDR program exists because Fannie Mae's data shows that certain loans carry very low risk of value-related problems. By using automated analysis of property and borrower characteristics, they can identify loans where a full appraisal adds little protection.
The 120-day time limit on PDR offers ensures the automated analysis reflects current market conditions. Property values and market dynamics can shift quickly, so an older analysis might not accurately reflect current risk levels.
The LTV limits vary by loan type because different transactions carry different risks. Purchase transactions use actual sale prices, which reflect current market values. Refinance transactions rely on estimated values, which can be less reliable. Cash-out refinances pose additional risk because borrowers are taking money out of the property.
Common Problems That Can Derail ACE+ PDR
Your ACE+ PDR eligibility disappears if you change key details about your loan after receiving the offer. This includes the property address, loan amount, purchase price, estimated value, loan type, property type, or occupancy. Even small changes can trigger a new automated analysis that might not qualify for PDR.
If you already obtained an appraisal for any reason connected to this mortgage, you cannot use ACE+ PDR. This includes appraisals ordered by previous lenders if you're switching companies, or appraisals you got for other purposes like estate planning.
Properties with resale restrictions generally don't qualify, though age-restricted communities are an exception. Non-arm's length transactions also disqualify you - this includes purchases from family members, employers, or other parties where the sale price might not reflect true market value.
If your property sits in a disaster area, your lender must verify that the disaster didn't affect the property's value or marketability before accepting the PDR offer. This requires additional documentation and representations from your lender.
Special Situations That Require Extra Steps
When your closing date falls more than 120 days after your loan documents are signed, your lender must warrant that the property value hasn't declined below the estimated value used in the automated analysis. This protects against market changes during extended closing periods.
If you're using rental income from an accessory dwelling unit on your primary residence to qualify for the loan, you cannot use ACE+ PDR. The automated system cannot adequately assess the rental income risk without a full appraisal.
Some loan programs are automatically excluded from ACE+ PDR eligibility. These include renovation loans, construction-to-permanent loans, and certain state-specific mortgage types like Texas equity loans. The automated analysis cannot account for the additional complexities these loan types introduce.
Your lender cannot represent that Fannie Mae performed any property review or valuation when using ACE+ PDR. The automated system makes eligibility decisions based on data analysis, not property inspection or valuation by Fannie Mae staff.
References
For the official guidelines, see 5602.4: ACE+ PDR in the Fannie Mae Selling Guide.
Mortgage guidelines change. Stay current.
Fannie Mae and Freddie Mac update their rules several times a year. Get notified when changes affect your mortgage eligibility, required documents, or loan terms.
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Original Freddie Mac Guideline Text
Bulletin 2025-7
, which announced the policy requirements for Uniform Appraisal Dataset (UAD) 3.6. Sellers may begin delivering UAD 3.6-compliant appraisals prior to the mandatory effective November 2, 2026 version of this section.
This section contains requirements related to:
ACE+ PDR overview
Process for qualifying for and accepting the ACE+ PDR offer
Ineligible Mortgages
Conditions that prevent the Seller from accepting the ACE+ PDR offer
Acceptable age of the ACE+ PDR offer
Data changes that impact ACE+ PDR eligibility
ACE+ PDR requirements for Settlement Dates more than 120 days after the Note Date
ACE+ PDR eligibility in disaster areas
Seller representation of property review or valuation
ACE+ PDR additional requirements
Beyond ACE application programming interface (bACE API) submission requirement
(a)
®
Mortgages, the Seller may receive the option to accept an ACE+ PDR offer and originate the Mortgage with a PDR.
If the Seller accepts the ACE+ PDR offer, Freddie Mac will:
Accept as the value of the Mortgaged Premises:
The purchase price of the Mortgaged Premises, for purchase transactions, or
The estimated value of the Mortgaged Premises, for refinance transactions
Not exercise its remedies, including the issuance of repurchase requests, in connection with a breach of the Seller’s selling representations and warranties related to the value of the Mortgaged Premises
For refinance transactions, the Sellers must have written procedures in place that prohibit changes to the estimated value in Loan Product Advisor for the purpose of obtaining ACE+ PDR or more favorable Mortgage terms (e.g., avoiding mortgage insurance).
The procedures must include a process for establishing the estimated value, which may include, but is not limited to, the use of the Borrower’s estimated value, an Automated Valuation Model (AVM) or an online valuation tool or website.
(b)
Process for qualifying for and accepting the ACE+ PDR offer
For a Mortgage to qualify for an ACE+ PDR offer:
The Mortgage must be an Accept Mortgage
The Last Feedback Certificate must indicate the Mortgage is eligible for representation and warranty relief with ACE or ACE+ PDR. (This represents the “offer.”)
The final submission of the Mortgage to Loan Selling Advisor
®
must indicate the representation and warranty relief status is “Y” or “Yes”
In lieu of accepting the ACE+ PDR offer, the Seller may deliver the Mortgage with an appraisal report if the eligibility requirements for the selected appraisal type are met
For Mortgages that receive an ACE+ PDR offer, to accept the ACE+ PDR offer, the Seller must deliver the Mortgage with the ULDD Data Points identified in the data delivery instructions in
Section 6302.10(c)
.
(c)
Eligible Mortgages
To be eligible for an ACE+ PDR offer, the Mortgage must:
Be secured by a 1-unit dwelling that is either a Primary Residence or a second home
Meet the following occupancy and maximum loan-to-value (LTV)/total LTV (TLTV) ratio requirements:
“No cash-out” refinance
90%
70%
60%
*A TLTV ratio up to program limits for the associated Mortgage product
(d)
Ineligible Mortgages
The following Mortgages are ineligible for ACE+ PDR:
Mortgages for which an appraisal has been obtained in connection with the Mortgage
Mortgages secured by one of the following:
A leasehold estate
Mortgages secured by Mortgaged Premises subject to resale restrictions, excluding those subject to age-based resale restrictions
Mortgages secured by a property acquired in a Non-arm’s Length Transaction
Mortgages secured by a property where the property owner at the time of sale (i.e., the property seller) is a lender or government entity
Mortgages with an estimate of value or purchase price greater than $1,000,000
®
®
®
Renovation Mortgages
Seller-Owned Modified Mortgages that are Home Possible
®
Mortgages
Texas Equity Section 50(a)(6) and Texas Section 50(f)(2) Mortgages
(e)
Conditions that prevent the Seller from accepting the ACE+ PDR offer
Sellers may not accept the ACE+ PDR offer if:
An appraisal is required by law or regulation
Rental income from an ADU on a subject 1-unit Primary Residence is used to qualify the Borrower
(f)
Acceptable age of the ACE+ PDR offer
The ACE+ PDR offer provided through the Loan Product Advisor Feedback Certificate message is valid for 120 days. If the offer is more than 120 days old on the Note Date, resubmission to Loan Product Advisor is required to determine ongoing ACE+ PDR eligibility.
(g)
Data changes that impact ACE+ PDR eligibility
If the Seller changes loan data (e.g., address of the property, loan amount, purchase price, estimate of value, loan type, property type, occupancy of the property, etc.) in a subsequent submission, the original offer will become invalid, and Loan Product Advisor may provide a different eligibility determination.
(h)
ACE+ PDR requirements for Settlement Dates more than 120 days after the Note Date
If the Settlement Date is more than 120 days after the Note Date, the Seller must warrant that the value of the subject property as of the Settlement Date is no less than the estimated value submitted to Loan Product Advisor.
(i)
ACE+ PDR eligibility in disaster areas
If the Mortgaged Premises is located in a disaster area, the Seller may accept an ACE+ PDR offer if the Seller can represent and warrant that the value and marketability of the Mortgaged Premises has not been adversely impacted. See
Section 4407.1
for property condition requirements.
(j)
Seller representation of property review or valuation
A Seller that has accepted an ACE+ PDR offer must not make any representation that Freddie Mac has performed a property review or obtained a valuation of the Mortgaged Premises.
(k)
ACE+ PDR additional requirements
Each Mortgage delivered with a PDR must retain the PDR in the Mortgage file and also comply with the additional requirements below:
Section reference
Qualification and requirements for the property data collector and Seller oversight
Section 5604.3(c)
PDRs with required repairs and/or inspections
Section 5605.8
ACE+ PDR upgrade to appraisal requirements
(l)
bACE API submission requirement
The PDR must be submitted to the
bACE API
(opens in new window)
.
