What does approve/eligible mean?

The system found the loan meets guidelines. Lenders may still require documentation and conditions.

What does refer mean?

The loan did not get an automated approve. It may go to manual underwriting for further review.

Can I get approved with a refer?

Yes. Manual underwriting can approve loans that automated systems refer. Additional documentation may be needed.

What Is Automated Underwriting?

Disclaimer: This website provides general mortgage and financial information for educational purposes only. It does not constitute financial, legal, or mortgage advice. Housentia is not a licensed mortgage broker, lender, or loan originator.

This content is provided for general educational purposes only and does not constitute financial, legal, or mortgage advice.

Introduction

Automated underwriting uses software to evaluate loan applications against Fannie Mae and Freddie Mac guidelines. Desktop Underwriter (DU) and Loan Product Advisor (LPA) return approve, refer, or ineligible. See What Is Desktop Underwriter, What Is Loan Product Advisor, and What Is Manual Underwriting.

Frequently Asked Questions

What is automated underwriting?: Systems that evaluate loan applications against investor guidelines. Fannie Mae uses Desktop Underwriter (DU); Freddie Mac uses Loan Product Advisor (LPA).
What does approve/eligible mean?: The system found the loan meets guidelines. Lenders may still require documentation and conditions.
What does refer mean?: The loan did not get an automated approve. It may go to manual underwriting for further review.
Can I get approved with a refer?: Yes. Manual underwriting can approve loans that automated systems refer. Additional documentation may be needed.

Educational Disclaimer

This content is provided for general educational purposes only and does not constitute financial, legal, or mortgage advice.

Housentia is not a lender, mortgage broker, or loan originator.

Systems and guidelines change.