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New Contributor
rross
Posts: 57
Registered: ‎06-13-2011

DTI appears high, but fiancé pays half of mortgage...

Looking to buy a car. My DTI appears to be 45%, but it's that high because the condo is in my name only. My fiancé lives with me and pays half the payment. Will a dealer take that into consideration or not really? (I'm gonna guess it doesn't matter... my situation on paper is probably all they go off of.) Just wondered...
New Contributor
ds3
Posts: 76
Registered: ‎10-02-2012

Re: DTI appears high, but fiancé pays half of mortgage...

Unless she's a joint applicant on the car loan, they will not take her payment or income into consideration.

Established Member
nolimits
Posts: 52
Registered: ‎07-10-2007

Re: DTI appears high, but fiancé pays half of mortgage...

Could you not use her half of the monthly payment as income, if there was a lease? If she pays half the utilities, insurance, taxes, etc that would also need included in her monthly fee to live there.

It is only the poor who pay cash, and that not from virtue, but because they are refused credit. - Anatole France

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Valued Contributor
tooleman694
Posts: 2,296
Registered: ‎08-25-2011

Re: DTI appears high, but fiancé pays half of mortgage...

To use her income you would need her on the auto loan.

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Corvidae
Posts: 95
Registered: ‎03-19-2011

Re: DTI appears high, but fiancé pays half of mortgage...

[ Edited ]

Yup, she'll need to co-sign, but other factors can still apply.

 

For example, I had 41% DTI and excellent credit when I bought my new car.  I am on the mortage of a house I no longer own (divorce).  I had no revolving debt so it was literally all of my debt.  The bank did not hesitate to give me $20k at 3.41%.  

 

It just depends on the full picture.

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Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: DTI appears high, but fiancé pays half of mortgage...

Remember, an auto loan is not necessarily like a mortgage loan where they always use the lower mid-score.  Some lenders will take the highest score of the two applicants.  Not sure why you are considering not having your fiance on the loan, but if it is because of credit issues, it may not matter, and it may be a good way for her to get a positive tradeline.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
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MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

Re: DTI appears high, but fiancé pays half of mortgage...

You may be able to just state how much YOU pay in mortgage similar to a situation of renting with a roommate. The bank may want to see your bank statements showing your only paying half or a deposit every month of her half going into your account or if it is joint, the extra income coming in from your fiancé. If she doesn't have good credit, it could drastically affect your interest rate. So I would tell them your situation to see if there is a work around...no guarantees as they usually want the other half on the loan but they may just approve you by yourself with the lower DTI AFTER they run the app jointly and can see her financials along with yours. If she has great credit, I would just do a joint app.
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Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: DTI appears high, but fiancé pays half of mortgage...


MovingForward_2012 wrote:
You may be able to just state how much YOU pay in mortgage similar to a situation of renting with a roommate. The bank may want to see your bank statements showing your only paying half or a deposit every month of her half going into your account or if it is joint, the extra income coming in from your fiancé. If she doesn't have good credit, it could drastically affect your interest rate. So I would tell them your situation to see if there is a work around...no guarantees as they usually want the other half on the loan but they may just approve you by yourself with the lower DTI AFTER they run the app jointly and can see her financials along with yours. If she has great credit, I would just do a joint app.

It could, but not with all lenders.  Some lenders use the highest score of the two applicants.  OP can ask the lender which way they do it.  And in any event, you can have them run the numbers with both people on the loan and with only one person on the loan, and see whether it comes back approved and with the same interest rate.

 

 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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