Overview
Receiving a notification that your loan has not been automatically approved does not equate to a loan denial. Our automated underwriting system might not have been able to issue an approval based on the initial information provided. However, we can still manually review your application to potentially approve your loan.
Common Reasons for Unsuccessful Automated Underwriting
Low Credit Score: Your credit score may be below our minimum FICO requirements.
Limited Credit History: There may not be enough credit data available to generate a FICO score.
Credit Freeze: A credit freeze can prevent us from accessing your credit report.
Errors on Credit Report: Mistakes on your credit report can adversely affect your FICO score.
Missing or Incorrect Personal Information: Incomplete or incorrect information can lead to issues in accessing the correct credit report.
Low Property Value: The estimated value of the property may not meet our lending criteria.
Low Debt Service Coverage Ratio (DSCR): The property’s income may not sufficiently cover the debt payments.
Other Reasons: There may be other specific factors affecting the decision.
Enhancing Your Application
Adding a Co-Borrower: If your application was not approved due to insufficient experience, a low credit score, or if your entity has multiple members, consider adding a co-borrower to strengthen your loan application. A co-borrower can provide additional assurance to lenders by sharing the responsibility for the loan, potentially leading to a successful loan approval.