Fannie Mae DU recommendation showing favorable credit-risk and eligibility assessments for the submitted casefile.
Approve/Eligible is a Fannie Mae Desktop Underwriter recommendation showing that the submitted casefile received a favorable credit-risk assessment and appears eligible for delivery to Fannie Mae, subject to the DU findings and lender verification.
Both parts matter: Approve addresses DU’s credit-risk assessment, while Eligible addresses Fannie Mae eligibility for the submitted scenario.
Approve/Eligible is a strong automated result for a conventional mortgage routed through Desktop Underwriter (DU). It usually allows the lender to continue on the DU path if the documents support the submitted data and every applicable requirement is satisfied.
It is not final loan approval. DU does not verify the borrower’s documents or make the lender’s credit decision. The lender must confirm income, employment, assets, credit, property, occupancy, loan terms, and any contradictory information. It must also apply its own overlays and legal obligations.
A favorable recommendation can change after resubmission. The result only describes the casefile data evaluated in that run.
Borrowers may hear Approve/Eligible during preapproval, after a complete application, or while underwriting is underway. The recommendation appears in the DU Underwriting Findings report after the lender submits the casefile.
The report then guides documentation and review. If the verified file matches the submission, the property is acceptable, and the borrower clears the lender’s conditions, the loan can move toward final approval. If material data changes, the lender updates and reruns DU under the applicable resubmission rules.
| DU component | Plain-language meaning |
|---|---|
| Approve | The casefile satisfies DU’s automated credit-risk assessment for the submitted scenario |
| Eligible | The casefile appears to satisfy Fannie Mae eligibility requirements evaluated by DU |
| Approve/Eligible together | Both assessments are favorable, subject to accurate data, findings, and lender review |
An Approve/Ineligible result illustrates why the components must remain separate: the risk assessment can be favorable while a product, transaction, property, or another eligibility requirement prevents delivery as submitted.
A borrower has stable qualifying income, acceptable credit, enough funds, and a conventional purchase scenario. DU returns Approve/Eligible and requests verification of employment, income, assets, liabilities, and property information.
The lender issues a conditional approval after reviewing the file. The borrower still must provide updated statements and the property must pass appraisal and title review. Approve/Eligible supported the path, but the lender’s conditions determine what remains before closing.
Desktop Underwriter is the system. Approve/Eligible is one recommendation returned by that system.
Accept is an LPA risk class, not a DU recommendation. LPA reports purchase eligibility separately, so Accept is not a direct word-for-word substitute for Approve/Eligible.
AUS findings are the complete output. Approve/Eligible is only the headline recommendation within the DU report.
Conditional approval is a lender status after review. It can follow a favorable DU result but still contains unresolved requirements.
Clear to close occurs later, after the lender clears the required underwriting and closing conditions.