I applied for an FHA loan for 420,000 (The cost of livin in NYC ). I was not approved due to my high back end ratio. My middle credit score dropped from 684 in 2/08 to 654 4/08. I want to buy a house by summer. Will reducing my debt in 2-3 months help me?
Re: Can't qualify due to high back end ratio of 64%
Depends on how much you are going to be reducing your debt by (in terms of monthly payments). As soon as you have lower payments, you can use your new "debt load" to qualify with... you don't have to be at lower payments for a prolonged period of time or anything. Would need more information in order to ascertain your situation though - such as income, monthly debt payments now, monthly payments after you reduce your debt - and also why your score dropped ~30 points in 2 months.
Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states