DTI FHA?

[Anonymous]

Here's the low down. 

-I have no debt besides current mortage. 

-No lates past 14 months

- No repo/judgements BK's

Make 55,000 year plus two yr avg 11,000 bonus for a total of gross $66,000

-  Looking to purchase property valued around 290,000

FHA loan limit in my county is 281,000.  I will have 25,000 avail for down payment.  Does anyone have an idea what my payment would be AND if it would be a low enough DTI?  Internet calculators tell me my payment would be $1,600-2,400???  I can't seem to find any reliable info!  Eloan website says I prequlify for conventional loan of up to $400,000! (which makes no sense because payments would be more than I make per month!)

Any help????

[tryingtogetitrightnow]

Howdy,

I don't understand why internet calculators are so different for payments. Just to calculate the payment amount (not including taxes or insurance), if you have Excel, you can type in the following formula:

=PMT(0.06/12,360,-300000)

I think that's all right (someone correct me if I'm wrong please). I did this for a loan a 30 year loan at 6% for a $300,000 loan, and got $1,798.65. You can adjust the numbers for your situation. The first value is the interest rate, 6%/12 'cause there's 12 months in a year, the second value is the number of payments (30 years, so 360 payments), and the last entry is 300000. Remember to make sure you add any fees to your loan amount and subtract any downpayment you're making. Then you need to add in PMI, taxes, etc.

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@Anonymous wrote:

Here's the low down.

-I have no debt besides current mortage.

-No lates past 14 months

- No repo/judgements BK's

Make 55,000 year plus two yr avg 11,000 bonus for a total of gross $66,000

- Looking to purchase property valued around 290,000

FHA loan limit in my county is 281,000. I will have 25,000 avail for down payment. Does anyone have an idea what my payment would be AND if it would be a low enough DTI? Internet calculators tell me my payment would be $1,600-2,400??? I can't seem to find any reliable info! Eloan website says I prequlify for conventional loan of up to $400,000! (which makes no sense because payments would be more than I make per month!)

Any help????

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[sh9730]

OK, assuming loan amount of 265K @ 6.00% (average FHA loan rate these days) your monthly housing payment for principal and interest ONLY is $1588.00.  You will have to add property taxes (dont know what they are in your area but take annual amount and divide by 12 and add to payment), and also homeowners insurance and HOA fees if any.  So, cant give you a firm answer on what the payments for the house will be.

As for DTI you will QUALIFY for, on FHA loans a rule of thumb (there are many exceptions) is 31%for the total housing payment alone, and then 43% for your total monthly payments (Total housing plus min cc payments, auto loan, and any other ongoing monthly obligations - not food, utils etc)

On 66K a year (although the Im not 100% sure how they do the bonuses?) your monthly gross is $5500 per month.  31% of that would be $1705.00 per month and 43% would be $2365.00 per month.  SO, the housing payment you would qual for would be cutting it close since you have to add those other items to the $1588.00 I mentioned above, BUT, if you have some reserves, or other compensating factors, from what I understand you could get approval at a considerably higher DTI than 31%. 

Now, I am NOT a mortgage broker, but am about to go through the  process so have been heavilly researching for a few months about FHA.   Also, a mortgage broker would have to confirm whether you can even GET an FHA loan since I think you cannot have owned a home within the last three years to qualify and I think you said you have a current mortgage?

Hope this helps.

[athensguy]

I just got an FHA mortgage for a $215K house. $150 HOA and $700 Ins., along with whatever the Taxes and MIP are, makes the first year of payments $1600/month or so. I will have a surplus in my escrow because of overestimation of taxes. I am in Northeast GA, so that's where the taxes are calculated.

Message Edited by erchambers on 03-31-2008 11:40 AM

[Anonymous]

Anyone know for sure?  Previous posted says I may not qualify for FHA loan because I have a current mortgage.  Says he/she thinks that you can not have had a mortgage in the last three years?  Any insight?

Thanks for all of the good information!!

[athensguy]

Having had a mortgage in the last three years won't hurt your chances of getting an FHA loan as long as it was a positive TL. The main restriction on FHA loan eligibility is that you aren't generally allowed to have two FHA loans at the same time.

[Anonymous]

Erchambers- Your profile pic compells me to ask: are you a ninja?

[athensguy]

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@Anonymous wrote:
Erchambers- Your profile pic compells me to ask: are you a ninja?

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If I wasn't so lazy I might be a ninja. Alas, I am not.

[ShanetheMortgageMan]

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JMW331 wrote:

Here's the low down. 

-I have no debt besides current mortage. 

-No lates past 14 months

- No repo/judgements BK's

Make 55,000 year plus two yr avg 11,000 bonus for a total of gross $66,000

-  Looking to purchase property valued around 290,000

FHA loan limit in my county is 281,000.  I will have 25,000 avail for down payment.  Does anyone have an idea what my payment would be AND if it would be a low enough DTI?  Internet calculators tell me my payment would be $1,600-2,400???  I can't seem to find any reliable info!  Eloan website says I prequlify for conventional loan of up to $400,000! (which makes no sense because payments would be more than I make per month!)

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What are you going to do with the home that has the current mortgage on it?  Are you going to sell it prior to purchasing the new home?  Keep it and rent it out?  Is it already a rental?  If so how much do you get in rent on it?  How much is the mortgage payment including property taxes & insurance?  If you are going to keep it, is it an FHA loan or a conventional loan?  If it's an FHA loan, how far away is it from where you are looking to buy?  Where are you buying?

The answers to all of those questions would play a part in if you would qualify for the new home or not.  If you are selling the home before/simultaneously with buying the new home, or if the rental income covers the mortgage/taxes/insurance payment on it, then it appears your debt to income ratio should qualify you for the new purchase.

There are no first time homebuyer requirements for FHA.

Message Edited by ShanetheMortgageMan on 04-06-2008 12:59 PM