When FHA files go to manual underwriting, compensating factors, and extra documentation. The 2 Mortgage Guys at Luminate Bank, lending nationwide.
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Yes — FHA is one of the most flexible programs for manual underwriting. When automated underwriting (AUS) issues a Refer, or when credit is thin, an underwriter can still approve the loan using FHA’s published compensating factors — reserves, residual income, lower ratios, cash to close, and documented payment shock. Ryan and Steve build the compensating-factor package before the file goes in.
A Refer finding is not an automatic denial — it is a request for human judgment.
FHA expects specific strengths — not vague “good story” narratives.
Manual files move faster when evidence is complete on day one.
We treat a Refer as a packaging problem — not a dead end.
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Ryan & Steve will stress-test your ratios, reserves, and residual income — then package compensating factors so a Refer finding does not end the conversation.