Does FHA allow Manually Underwritten loans?
FHA allows the use of DU or LP and also allows loans to be manually underwritten if an AUS approval cannot be obtained. Manually underwritten loans must be fully documented and must adhere to FHA guidelines such as ratios of 31/43, etc. As stated in the previous question, our investors will not take a loan with less than a 580 score unless it is approved by DU/LP and we still have some investors that allow the use of Non-traditional Credit. Loans utilizing Non-Traditional Credit or loans without an AUS approval using DPA’s (Ameridream, Genesis, Nehemiah, etc.) with credit score less than 600 require a Credit Review from senior management.
