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New Contributor
hopeful23
Posts: 94
Registered: ‎06-29-2012

Can you lower your DTI for ...?

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*Edited*

 

Can you lower your DTI after you've already applied for a mortgage? For example: Our DTI is listed at 51.51% (including new home) as of Sept 7th when our credit was first ran. Now, our DTI is much lower, and we have 10 thousand we could put towards debt. 5 thousand would pay off all of our credit cards and get us to 44.67% (including home). Will a normal mortgage company allow this to meet the DTI requirements for an FHA loan?

 

Our mortgage company is telling us that we can not pay off credit cards, because we could just run them back up. True. But if we paid off a loan, we could just as easily go out and get a new loan...So this doesn't make sense to me and I"m not sure if this is normal practice. Anyone with any experience? Thank you.

Starting Scores: EQ – 492, TU – 508, EX – 507 (Lender pull March ’12)
Current Scores: EQ – 591 (FICO), TU – 623 (FICO), EX –623 (CS), CK - 621
Goal: 700+ AND no baddies!

Current Cards: NFCU $4000 CL, Cap One $300 CL (secured), Cap One $300 CL. & an NFCU car loan for $18,500
New Visitor
Kandb
Posts: 2
Registered: ‎10-23-2012

Re: SOOO Stressed about DTI!

What kind of loan are you trying to get? From what I was told if there is a good difference in the amounts your payoff, they can run your credit again and use that info. 

New Contributor
hopeful23
Posts: 94
Registered: ‎06-29-2012

Re: SOOO Stressed about DTI!

We are trying to get an FHA 203K loan.

Starting Scores: EQ – 492, TU – 508, EX – 507 (Lender pull March ’12)
Current Scores: EQ – 591 (FICO), TU – 623 (FICO), EX –623 (CS), CK - 621
Goal: 700+ AND no baddies!

Current Cards: NFCU $4000 CL, Cap One $300 CL (secured), Cap One $300 CL. & an NFCU car loan for $18,500

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