Real Estate and Home Mortgages - Appraisal for refinance question

My refi loan to value ratio is less than 45%, and I've got an excellent credit score, but the lender is insisting that I need a full in and out appraisal. Are they being unreasonable? I'm in the middle of projects, and the house is cluttered, so it's not going to photograph beautifully at the moment. Is there a way to avoid the full-blown appraisal option? I've heard that in cases like mine, where there is no risk to the lender, they will often just do a drive-by, exterior appraisal. I have nothing to "hide" -- just don't want the mess to affect the appraised value. Thanks for any advice you can offer.

You might try another lender, they don't all have the same requirements but in this economy with housing prices falling, you can understand their concern.

Thanks, marksr -
Yes, I definitely do understand their concern. It's still a no-lose situation for them, though.

If it's a "conventional" loan, the loan will be run through the Fannie Mae or Freddie Mac underwriting engine to determine, among other things, the type of appraisal required. Even if the lender intends to service the loan, the loan still has to be saleable to the agencies (fannie/freddie). It's really out of the lender's control. They may have guidelines MORE strict than the agencies but they can't deliver loans that don't meet guideline minimums.

In the old days (last year) you might receive a drive by finding/request from the fannie/freddie engine based on low loan to value non cash-out transaction and good scores. Times have changed. I don't recall seing a bulletin concerning official policy change from the agencies but I haven't received any drive by findings in over a year.

You would never recieve a drive by on a cash out transaction.

That said, the cleanliness of your home should have no bearing. As long as everything works and is in tact you should be fine. "condition" is a factor but that pertains to wear and tear and damage - not clutter. Evreything else should be based on square footage, bedrooms, location etc.

Thanks for the post. Yes, you were correct - it's a Fannie Mae requirement issue. Case closed. :)