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Conventional mortgage with 30 day lates between months 13-24

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Karen27000
New Visitor

Conventional mortgage with 30 day lates between months 13-24

I wanted to get some professional opinions on whether an automated DU approval will be likely next month.


Mortgage scores are currently 720, 715, and 745. About 40 points lower on average than FICO 8.


Utilization 4% 

No serious delinquency as defined 

DTI would be roughly 22% and 24% based on estimated purchase price, current rates, etc

$850k purchase with 10% down or whatever brings me to the conforming limit. If necessary I could do 20% but would rather not be required to.

Reserves would cover multiple years

 

My challenge is I had quite a few 30 day delinquencies including several on an installment loan and some across credit cards. This was related to a contentious situation that has since been resolved. All past delinquencies will be at least 12 months aged by next month - but they are the biggest and only concern.

 

Is an automated approval possible with multiple 30 day delinquencies within 24 months but none within 12 months?

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ShanetheMortgageMan
Super Contributor

Re: Conventional mortgage with 30 day lates between months 13-24

It's certainly possible to get an automated underwriting approval in your situation.  I've seen people get automated underwriting approvals with 30 day non-mortgage lates in the past 12 months even.  Your loan officer will attempt to get it based on your requested terms, but if not, then they should fiddle around with increasing/decreasing the down payment which will make you have less/more reserves, there may be a "sweet spot" between down payment, DTI and the amount of reserves that'll do the trick.  They can also run both Fannie Mae DesktopUnderwriter (DU) and Freddie Mac Loan Product Advisor (LPA) as one might be more likely to approve than the other.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Mortgage Loan Officer located in Southern California and lending in all 50 states
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Karen27000
New Visitor

Re: Conventional mortgage with 30 day lates between months 13-24

Thank you! My fingers are crossed for automated approval 

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