This is a YouTube video titled "Manual Underwriting" containing an explanation about the automated underwriting system (AUS) used by lenders and how manual underwriting can override automated decisions to help homeowners qualify for loans. The content focuses on lending guidelines, debt-to-income ratios, and payment history requirements, created on August 24, 2023.
Nearly all lenders use what's called automated underwriting system or aus. This is a computer system that scans the profile of the loan. It either grants an approval or a refer, which is a denial if it doesn't approve. Most all lenders out there can't do a loan. But there is a little way we can go outside of the guidelines and do what's called a manual underwrite. And this is where we kind of go off the beaten path. Go around the computer system. Now it's a little give and take. It does restrict the debt to income or the monthly budget. Can't go, can't stretch yourself quite as far. Normal FHA can go to 50%, 56.9. Normal manual underwrite can only go to 43% debt to income ratio. So it does cut that back a little bit and really it focuses in on the last 12 to 24 months payment history. They really want to know that you're back in good standing, you're back on track, making good payments for the last year or two. And there's a potential it could override that refer from the automated underwriting system. This is a way we've helped homeowners turn no's into yeses and get into their new home.
