Manual Underwriting Saves the Day for Tough Loan Approvals
Have you had difficulty getting approved for a mortgage? Have you ever thought that if a person, rather than a computer software program, could look at your application information, things might work out in your favor?
These days, automated underwriting is the clear choice for most mortgage approvals. Most mortgage brokers go this route. It is far less time-consuming than doing it all by hand. Automated underwriting also takes human error out of the equation. But what if a human’s perspective is exactly what you need to get approved for a mortgage? That’s where manual underwriting comes in!
What Is Manual Underwriting?
Manual underwriting is a mortgage approval process in which the lender reviews your financial information with their own eyes to determine if you qualify. Most underwriting today is done through an automated system, but manual underwriting is still available for people with out-of-the-norm financial situations.
When Is Manual Underwriting Used?
At MortgageDepot, we call on manual underwriting when a person’s financial situation might not fit neatly into an automated system. Here are a couple of examples of when we turn to manual underwrites:
- When the borrower has minimal credit history
- When the borrower has financial issues on their record
- If the borrower is considering a jumbo loan
- Upon the borrower’s request (in select circumstances)
Qualifying for a Manual Underwriting Process
A manual underwriting process might get you the financing you need when an automated underwriting system won’t. You could qualify for a manual underwrite with MortgageDepot if you fit these qualifications:
- Credit score and LTV
– If your credit score is 680 or lower, your LTV cannot exceed 80%.
– If your credit score is between 680 and 720, your LTV cannot exceed 85%.
– If your credit score is 720 or higher, your LTV cannot exceed 90%. - DTI and HTI
– Your DTI cannot exceed 43%.
– Your HTI cannot exceed 31%. - Mortgage history
– R&T Refinances or Purchases: The borrower must have made at least three
consecutive payments since the forbearance period.
– Cash Out Refinances: The borrower must have made at least 12 on-time payments
since the forbearance period. - Extenuating circumstances
– The borrower cannot use extenuating circumstances to reduce the waiting period
for bankruptcy, deed-in-lieu, foreclosure, or short sale situations.
Contact MortgageDepot Today!
If you’ve been turned away by lenders in the past, perhaps a manual underwrite is your answer! At MortgageDepot, we are dedicated to helping our clients reach their real estate goals. Connect with us today to see if you qualify for a manual underwriting process!
Connect with one of our loan consultants for more information.
