VA Manual Underwrite Downgrade

AUS-Approval To VA Manual Underwrite Downgrade

Gustan Cho Associates are mortgage brokers licensed in 48 states

When does an automated underwriting system approved file get downgraded to a VA manual underwrite downgrade on VA loans happen? If you are following Gustan Cho Associates, you know we are experts in VA mortgage guidelines. We do our best to help as many of our Nation’s veterans as possible.

The team at Gustan Cho Associates offer all of our VA mortgages without additional LENDER OVERLAYS.  We are able to help more clients than most lenders.

In the following paragraphs, we will detail a few VA options we have, that set us apart from our competition. We will also discuss when a VA loan needs to be manually underwritten, and how to apply for a VA loan with Gustan Cho Associates. In this article, we will discuss and cover when does AUS-approved VA loans get a VA manual underwrite downgrade on VA loans happen.

Expert Lenders on AUS-Approved VA Loans Downgraded To a VA Manual Underwrite Downgrade

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Not only do we offer our VA mortgage loans without any additional lender overlays, but we also offer a few specialty VA for gauge programs. We have a one-time close new construction VA mortgage, a VA renovation loan, and offer manually underwritten VA mortgages.

Gustan Cho Associates offers a one-time FHA and VA close  construction mortgage loan program. A “one time close” is a great option for our veterans who are looking to build a new property. This mortgage loan allows you to qualify one time for the loan

Some construction mortgages force borrowers to qualify to start the construction and qualify again once the home is complete for the final mortgage. With the VA products we offer, you simply qualify at the beginning, and you are set for the life of the loan. Please see this article for more information. This is important during times like this when millions of Americans are losing their job. If you started this process and then lost your job, you may not qualify for the home once it is completed. That is why only needing to qualify for the loan once is a major advantage.

AUS-Approval To VA Manual Underwrite Downgrade on Renovation Loans

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We also offer a VA RENOVATION LOAN. A renovation loan can be a great tool to increase the equity position in your property. Whether you are buying or refinancing, most homes can use a little elbow grease to be more desirable. A new bathroom or a renovated kitchen can dramatically increase the value of your property. This loan product allows up to $50,000 for renovations without a down payment. Please call Mike Gracz on 630-659-7644 for more information on what renovations are permitted.


When Does Is a VA Manual Underwrite Downgrade Required on VA Mortgages

Does Is VA Manual Underwrite Downgrade Required On VA Mortgages

When does a VA mortgage require a manual underwrite? Downgrading to a manual underwrite can be incredibly confusing for veterans and individuals who are not in the mortgage industry. Michelle McCue, an expert loan originator on VA loans at Gustan Cho Associates said the following about manual underwriting on VA loans.

What exactly does a manual underwrite mean?  If you do not get an automated underwriting system on a VA loan and get a refer/eligible per automated underwriting system, VA allows you to do a manual underwrite.

If you do not get an approved/eligible automated AUS report, you may need to manually underwrite the file. If the automated underwriting system says refer/eligible, then you may downgrade to a manual underwrite. In short, an automated AUS approval is the ultimate goal but if the findings are refer/eligible. VA financing is still possible. Please see our AUS BLOG for more information.

Typical Case Scenarios When Underwriters Downgrade To Manual Underwrite

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Reasons a VA loan will be downgraded to a MANUAL UNDERWRITE:

  • Late payments reported on the credit report
  • In an active Chapter 13 Bankruptcy
  • Less than TWO years discharged from a Chapter 13 Bankruptcy
  • Thee is significant changes in qualifying income
  • Multiple job changes

Applying For a Manual Underwrite VA Mortgage

How to apply for a VA loan with Gustan Cho Associates: First, you will need to gather the following information:

  • Last 60 Days Bank Statements – to source money for escrows
  • Last 30 Days Pay Stubs
  • Last Two Years W2’S
  • Last Two Years Tax Returns
  • Driver’s License
  • Certificate of Eligibility 

VA Manual Underwrite Pre-Approval Mortgage Process

Then contact Mike Gracz on 630-659-7644. You and Mike will have a one-on-one VA mortgage consultation. You will go over your qualifications in detail. From there you will be paired with a licensed loan officer in your state and start the pre-approval process.

Gustan Cho Associates are experts on manual underwriting on VA loans  with no lender overlays. We have a national reputation for being able to do mortgage loans other lenders cannot do.

Once you send in the documentation and complete an online application, your loan officer will get you pre-approved OR put you on a custom financial plan to qualify as soon as possible.

Shopping For a House After Getting Pre-Approved

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Once you have a pre-approval letter, you can start the house shopping process. We encourage you to continue to follow our website for changes in order to the mortgage industry. The COVID-19 coronavirus outbreak has created some abrupt changes in mortgage lending. While most lenders have raised credit score requirements on VA loans, Gustan Cho Associates have not. please reach out to us even if you have been turned down for a VA loan in the past. We look forward to hearing from you. The team at Gustan Cho Associates is seven days a week, evenings, weekends, and holidays.

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