I was informed that my in house underwriting was denied. my past credit issues were 3 paid collections from 2007, which i provided documentation to prove I was on a labor and industries claim for 18 months for a on the job back injury. my wife and I have made between 96k and 106k for the past 4 years. this is the email i got from my loan officer. he says we can still get the loan done. at this point we have been working on this for 6 weeks. I dont really want to continue this is not realistic. is it common to seek approval from investors if in house underwriting is denied? Could someone explain what this means. Below is email.
Your file had a complete review by our lead underwriter today and yesterday. She was not able to approve it in-house and stated the following: "The file is challenging on several levels and due to layering of risk, it is not one we can close in-house. It will need to be submitted directly to investor for underwriter approval."
- The challenge points are past credit issues for both borrowers, no reserves & gift, and Heather's bonus income appears to be declining due to position change.
We are submitting file directly to investor and are still checking on their current underwriting times for USDA loans. Thus, we are still hopeful of getting the file approved but it needs to go directly to the investor due to there being a combination of challenges. When the file gets approved by the investor's underwriter, we would then send the file to USDA for their underwriting approval.
