Mortgage Navigator • Conventional • Gap Audit
Why Did My Lender Say No?
“Conventional doesn't allow that” can mean four very different things. Knowing which one applies can determine whether the file is truly dead—or simply needs a different path.
1. Agency guideline
This is the actual published rule from Fannie Mae or Freddie Mac. If the rule is truly prohibited by both agencies, switching lenders may not solve the issue.
2. AUS result
DU or LPA may return an ineligible or non-acceptable result even where the written guideline does not create a blanket prohibition. AUS evaluates the complete risk profile.
3. Product or mortgage-insurance restriction
A specific program, MI company, LTV tier or affordable-product execution may be stricter than the base agency rule.
4. Lender overlay
A lender may choose to impose a stricter rule than Fannie or Freddie require. That does not make the overlay an agency guideline.
MortgageDadOf3 question: “Which of the four is stopping this file?”
Then ask: “Could the other agency—or a lender without that overlay—legitimately solve it?”