What is Manual Underwriting and Can It Help You Qualify for a USDA Loan?

What is Manual Underwriting?

Have you heard of manual underwriting but maybe not sure how it can help? With tighter underwriting guidelines, this is information that is critical for all homebuyers.

How Can Manual Underwriting Help with USDA Loan Qualifying?

Manual underwriting with the USDA loan program allow for more flexibility with credit standing and offers the following benefits:

• Currently, we are able to work with credit scores down to 620: Many lenders require a minimum of 640, which is the current USDA minimum required for automated approvals.
• When working with zero credit score buyers: We will need to verify rental history through cancelled check, or alternative credit such as phone, cable, water bills, or a combination.
• Exceptions for recent bankruptcies, short sales, & foreclosures are possible: These are all case by case and are based on the circumstances surrounding the situation.

Manual Underwriting is not offered by all lenders and is a more intensive review process but gives us the advantage to approve a loan that would normally have been denied.

This can help immediately in cases where the buyer is close to qualifying, but was just recently denied, or even with a current transaction that is experiencing financing problems, please let us know so we can review & determine if the situation may be a good fit for USDA manual underwriting.