Mortgage application: denied by automated system, now going to manual underwriting?

I was hoping that somebody experienced in this area might be able to shed some light on things…

My wife and I have had our offer on a home accepted, and we applied on Friday with Wells Fargo for the mortgage.

I calculated my own DTI’s (we are applying for an FHA mortgage because of credit problems) and we fall withing the 29/41. I have some tax debt, collection accounts and an open judgment that are all being satisfied on 12/15. My middle credit score was 557 and my wife’s was 585. The down payment will be 3%, and it will be borrowed from my 401K plan. The seller agreed to a $ 14K seller consession so we could finance the majority of the closing costs.

The sr loan officer told my wife that the “system” didn’t approve it, so it went to manual underwriting today.

We definitely have the income to make the PITI payments and our monthly obligations…so the credit is the concern…

What happens in manual underwriting? any idea what % that go into it get approved?

Register New Account
Reset Password