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Posts: 2
Registered: ‎07-25-2011
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Manual Underwriting for Preapproval

[ Edited ]

I'm currently looking at a fannie mae foreclosure that has been on the market for over 100 days. It is listed at 134K, but my realtor believes it can go somewhere between 110-120. It doesn't need renovating.  I applied for preapproval of 130K and it was sent for manual underwriting because it didn't make it through the automated system. The broker said it isn't denied at this point, but they have to take a closer look before approval.  I also have some past paid judgements (details below) and am wondering if those will interfere with the loan approval or if any of my other information will interfere. What can I expect from this point?


  1. Credit.  EX 685 score. Three previous judgments (two medical and one old credit card from 2005) that are all paid. Two judgements were paid in 08 and the other one in Jan 2010. Student loan paid on time every month for 3 years. Credit card account opened last September (credit limit $1000) has been paid on time and in full every month.
  2. Income. 30K salary - been at position 5 years 
  3. Monthly debt payments.  $150 student loan, $15 minimium on credit card (although it is always paid in full)
  4. Employment 5 years of employment at same employer (w-2s, tax statements available)
  5. Assets/Reserves.  4K in savings, $500 in checking, 10K in retirement
  6. Property. single family house
  7. Value. 110-130K desired,
  8. Occupancy.  Primary residence
  9. Transaction Type.  purchase

Established Contributor
Posts: 737
Registered: ‎08-25-2008
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Re: Manual Underwriting for PreApproval

Is your current credit card your 1st since the charged off credit card?  You say you pay it in full every month, but how much is the balance that is reported on the statement?


Looking at a 130k loan at 3.5% down you would need a down payment of 4550 + closing costs and you are showing only 4500 in the bank right now.. that'll be a tough sell.


you have mentioned a 685 EX score --- is this real or FAKO?  and what are the other 2 FICO scores?  remember they take the middle of all three and most lenders require a 620 min.

New Visitor
Posts: 2
Registered: ‎07-25-2011
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Re: Manual Underwriting for PreApproval

It is my first credit card since the charged off credit card years ago. The reporting balance on the statement is $65.00.


My lender pulled scores are EX 685 EF 691 TU 680. The middle score they are using is 685.



Super Contributor
Posts: 8,706
Registered: ‎09-28-2007
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Re: Manual Underwriting for Preapproval

Are you applying for FHA financing or conventional?  With conventional it's very hard to get a manual underwriting approval, but with FHA it's quite common.  Your situation looks doable for an FHA manual underwriting review, but it does depend on the property taxes/homeowners insurance for the home you are buying.  I suspect it was because of the public records why you may not have gotten an automated underwriting approval.

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