DTI Front-End (SELF-EMPLOYED)

[JasonL]

I am going to try for a mortgage loan in early 2013 and I am worried about front-end DTI ratio making it impossible.

I have a (2) year self-employment average of around $34,000. 2011 ($20,000) & 2012 ($51,000). 2013 income will be same as 2012.

I am looking at a payment of around $1000 - $1100 per month on a $200K - $210K house, with around $75K down payment (35%)

Middle score of around 670 with zero DEBT. Current rent payment is $945

My question is the 28% front-end DTI set in stone or is 37% or 38% possible? Does my 35% down payment help things?

I am fearing that I will have no choice but to wait until 2014 which would not be a good option for me.

Any thoughts would be appreciated greatly.

[StartingOver10]

No, the front end is not set in stone at 28% at all - especially since you have no debt.

You also have compensating factors (large down payment and no debt). Call a mortgage banker, get the ratios they use so you know for sure.

[thankfulheart]

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@JasonL wrote:

I am looking at a payment of around $1000 - $1100 per month on a $200K - $210K house, with around $75K down payment (35%)

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Are you also including taxes/insurance?  That will impact the DTI as well.

[JasonL]

The payment would include all taxes and insurance.