I applied for an FHA loan through Wells Fargo this week. I have twelve months solid payment. One collection that is dated 3-08 this year which I've been fighting. Underwriter has asked for exlpanations for all baddies and income verification. I have no real cash reserves and will be using equity in current home for downpayment and closing cost.
Q1 Is this manual underwriting? My mid score is 639
Q2 Since underwriter is asking for this info...does it usually mean I've got a good chance? I sent in info and explained all baddies honestly (basically told them there was no good reason to miss any payment and that I had to make some lifestyle changes after a career change)
Any insight would be great!
Thanks!
