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Established Member
Posts: 28
Registered: ‎10-03-2011
0

DTI Front-End (SELF-EMPLOYED)

[ Edited ]

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.

Moderator
Posts: 9,660
Registered: ‎03-06-2010
0

Re: DTI Front-End (SELF-EMPLOYED)

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.

Established Contributor
Posts: 619
Registered: ‎09-26-2011
0

Re: DTI Front-End (SELF-EMPLOYED)


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%)

 



 

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

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)

Established Member
Posts: 28
Registered: ‎10-03-2011
0

Re: DTI Front-End (SELF-EMPLOYED)

The payment would include all taxes and insurance.

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