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Can underwriter approve a FNMA loan that receives a did refer/eligible

by PBAKER47374 from , California. Jun 17th 2015 Reply


Nevin Williams (NevinWilliams)
#42 ranked lender in North Carolina - 108 contributions

Hi P Baker47374, In this case the loan will likely be downgraded to a manual underwrite and specific go into effect. Manual underwrite simply means that the underwriter must make the decision without a FNMA automated approval. Typically FNMA computer system (AUS) will issue the approval and the underwriter verifies that he file contains all of the appropriate documents and matches the requirements on the AUS approval. If the loan is refer/ eligible and gets downgraded to a manual underwrite one big change is that the debt to income ratio is limited to 31/43. This means the new estimated mortgage payment with taxes, insurance, HOA etc cannot exceed 31% of your monthly gross income and that all of your monthly debts combined don't exceed 43% of your monthly income. There are other rules but too many to share. Regarding loan approval. Lenders cannot comment on you being approved unless they go through the process and issue a formal decision. These are Federal laws related to the Fair Credit Reporting Act. Feel free to contact me with further questions. I have been lending all over California since 2003.

Jun 17th 2015
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Nevin Williams (NevinWilliams)
#42 ranked lender in North Carolina - 108 contributions

Please pardon my typographical errors. I accidentally submitted before proof reading.

Jun 17th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,938 contributions

Yes. but it's not that easy.. As Nevin said, when you receive a refer/eligible, it must be downgraded and manually underwritten, but there are a lot of lenders who will not do manual underwrites.. meaning, that if you do not get an approved/eligible, they will not do the loan.. There's an added risk when an underwriter has to make the decision vs. the automated underwriting system (AUS).. so for this reason, some will not do them. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jun 18th 2015
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