USDA Manual Underwriting...will I get denied?

[Anonymous]

So my LO submitted my information through USDA auto underwriting "GUS" and got a "refer" status and is now sending documents to manual underwriting.

He said he's pretty sure I'll be ok, but he can't tell me with 100% confidence.

My mid score is 623 (just above the minimum, I know), income is $42k/year, DTI is pretty high (40% I think?), low balances on my cards (less than 5%) and I only have a few hundred bucks in savings.

His biggest concern is that I have a collection from an old rental company that's only about 2 yrs old. The situation was pretty unique, long story, but he had me write a letter of explaination to send with my paperwork.

Is that collection going to screw me over? Also, will someone pull my credit again during this whole process? I'm paranoid about my score slipping below the 620 mark since it's already so close.

Any and all advice is welcomed. Thanks in advance!

[BrianB_The_Loan_Professor]

Did your lender give any indication of why it was a refer - the findings usually say what the problem is?

The biggest thing with a manual underwrite is DTI - if you are within the posted limits thats a great start

The next is credit - do you have a jaded history if you do they will go over that with a critical eye - looking at letters you have written etc

They also are very strict with tradeline requirements on a manual so they will go over that

There is no way we can say if you will or wont get approved - there are way too many unknowns that are in the file

If your LO thinks you will be fine I wouldnt worry - they are the one that knows the info and sees the entire package

Good Luck

BrianB TheLoanProfessor