Mortgage Underwriting Checklist

FHA: 580 (3.5% down) or 500–579 (10% down) · VA: 620 recommended · Conventional: 620 · Jumbo: 700+

Review frequency and recency of late payments; recent lates are typically disqualifying regardless of score

FHA requires outstanding judgments to be paid; medical collections may be excluded; verify balances and ages

Chapter 7: FHA/VA 2yr, Conventional 4yr · Chapter 13: FHA/VA 1yr from discharge with trustee approval, Conventional 2yr

FHA: 3yr · VA: 2yr · Conventional: 7yr (3yr with DU approval and 10% down) · USDA: 3yr

Housing expense ratio: FHA 31% (up to 40% with compensating factors) · Conventional/VA: no strict front-end cap via AUS

FHA: 43% (up to 50% with AUS approval) · VA: 41% guideline (AUS may approve higher) · Conventional: 45% (up to 50% with DU/LP) · USDA: 41% · Jumbo: 43%

Verify student loans (IBR minimum 1% or actual payment), car loans, credit cards, child support/alimony, other mortgages

W2s + paystubs for salaried; gaps >30 days require explanation; self-employed requires 2yr tax returns + P&L

Variable, overtime, bonus, commission income requires 2yr average with employer verification it will continue

2yr federal returns + YTD P&L; income must be stable or increasing; business accounts reviewed for liquidity

FHA: 96.5% · VA: 100% (no down payment) · Conventional: 97% (with PMI) · USDA: 100% · Jumbo: typically 80–85%

Loan amount based on lower of appraised value or purchase price; flagged if appraisal gap exists

Confirm SFR, condo, 2–4 unit eligibility per program; FHA condos require approved condo project; non-warrantable condos excluded from Conventional

Upfront MIP 1.75% (can be financed); annual MIP 0.55%–1.05% depending on term and LTV; included in DTI calculation

FHA loan limits vary by county; verify against HUD published limits for the subject property location

FHA requires borrower to occupy property as primary residence within 60 days of closing

Confirm VA entitlement via COE; verify remaining entitlement if prior VA loan exists

Net income after all obligations must exceed VA regional table minimums (varies by family size and region); this supersedes DTI for VA

Funding fee: 2.15–3.3% (first use vs. subsequent); veterans with service-connected disability are exempt

2025 baseline: $806,500 (1-unit); high-cost areas up to $1,209,750; amounts above require Jumbo underwriting

PMI required when LTV exceeds 80%; can be lender-paid (rate bump) or borrower-paid; cancels at 78% LTV automatically

Verify property address against USDA eligibility map; areas with populations under 35,000 are typically eligible

ALL household members' income counted (not just borrower); limits vary by county and household size; typically 115% of area median