Applying for mortgage-have questions

[Anonymous]

Score is 659. Only debt is a vehicle loan balance 48,000 payment is $744 (chose a short loan term). Income is 4956.

Applying for a home loan through veterans lending (I'm active army), and was told my debt to income is to high. I get how it's calculated but this being my only debt I don't see how I'm having such a hard time to be approved for 310k.

Any thoughts, suggestions, success stories with a lender?

[kc0039]

It's probably too high because of the car loan. You have to add in taxes and insurance to your DTI ratio. $310,000 is a pretty big house and add taxes on top of that. Plus VA loans needs to be calculated on residual income

[Anonymous]

310 is actually a pretty small home where we are located. We are in a VHCOL area. Taxes and insurance on a mortgage for a 310 home are hundreds cheaper than rentals we've been paying for.

[MauiMan85297]

It's definitely the $700+ auto payment.  My income is slightly higher and I had no autos in my name and at time of approval my CC payments were $125/mo and did a 280k VA loan.

asked if I needed more (up to 315k) and didn't need it, taxes for my house are $1400/yr.  If you're dead set on a home for that price then you need to do something with your auto payment.

[VALoanMaster]

---

@Anonymous wrote:
Score is 659. Only debt is a vehicle loan balance 48,000 payment is $744 (chose a short loan term). Income is 4956.

Applying for a home loan through veterans lending (I'm active army), and was told my debt to income is to high. I get how it's calculated but this being my only debt I don't see how I'm having such a hard time to be approved for 310k.

Any thoughts, suggestions, success stories with a lender?

---

Hi Ashcurious,

Did they tell you what your ratio is? I estimated taxes & insurance around $267 per month on a 310K home & I have 51% backend ratio. That is doable with VA as long as you get an automated underwriting approval, you exceed the VA residual income requirements by 20% or more & your lender doesn't have an overlay that caps you at 50%.

Another thing that we can do is break down your monthly income & gross up your BAH & BAS since they are not taxable & that will get your ratios down but it will not help with the residual income calculations.

[DallasLoanGuy]

we need more info. like what are taxes and insurance for that property?

you could refi the auto to a longer term

[Anonymous]

The principal/interest/taxes etc for 310 are calculated at 2021 ($175 more than the our rent we've paid for 2 years without issue). One lender said our DTI was 55.8% which seems fairly accurate, another said it was in the 60s. But the truck and mortgage would be only debts.

If we could do something about the truck payment we definitely would. Trust me. We bought it a day before we were informed our house was being sold and we needed to buy it or buy something. Rentals are non existent in this VHCOL area.

The lender who said we are in the 60s said that in order for him to remove the 3 small cc payments we'd have to close the cards completely. They are cards that don't carry balance and when we put app in in the middle of cycle the highest balance was $150 each having only a $25 payment. They were paid off before the statement hit like they always are. So we don't know why they told me to close cards in order to remove those payments although they were paid and no longer there.

[Anonymous]

The principal, interest, taxes etc would be 2021.

[VALoanMaster]

what are you using for taxes & insurance?

[krielly]

You mentioned your vehicle payments are high because you went with a shorter term. Is there any reason you can't refinance for a longer term to get the payment down to help your DTI? Obviously, you can continue to pay the same  amount each month to have the vehicle paid off in the same time frame, but on paper you are only held to the lower payment...

K