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Established Contributor
Posts: 568
Registered: ‎08-24-2012
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DTI question ;-)

Quick question! 

My income is this, $13.00hr, 40hrs per week,usually, sometimes leave early for the kiddos! (Florida panhandle, Accounts Receivable clerk, not rollin' in the dough, ya'll, lol)

Now, we pay rent, $500 per month(grandma owns our house, good deal, whew!) and I have an auto payment of $298 per month, though it is in my and the husband's name. I did receive a check for my son with CP, but it was cut due to our increase's in pay, but that was AFTER we had gotten our pre-approval. I have no credit cards, no other loans other than the auto. (this mortgage app is in my name only)

 

Now, what I am asking is, since the check for my son has been terminated, and I believe webhopper stated they may take into consideration that my husband makes really good money and can compensate for the check of what we figured would go from the $271 down to about $150, but went to $0, and would they cut the auto payment in half since it is in both of our names???

 

Thanks!!! Smiley Happy

"When you are down in the mouth, remember, everything turned out ok for Jonah."

Current FICO's(by lender) 10/9/12
EX:649, EX:651, TU:683
Moderator
Posts: 13,897
Registered: ‎04-15-2011
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Re: DTI question ;-)

No, they won't only take half of the payment into account.  If your name is on it, they will take the entire payment amount into account for your DTI.  You could leave the rent part out.  So now if I'm looking at it right, the car loan is all you have as far as payments?   You should be OK in the DTI then.

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Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
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Re: DTI question ;-)

They wont count your husbands income except as a compensating factor.... I don't know how to explain that... they wont discount the car from your dti unless you can prove that someone else has been paying the note for 12 months. There's no such thing as having half a car note. You either have the whole thing or you don't because someone else pays it.

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Established Contributor
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Registered: ‎08-24-2012
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Re: DTI question ;-)

Well,they didnt count my husbands as a compensating factor either, Dont qualify for anything without that $150.00 per month. No loan for us.

"When you are down in the mouth, remember, everything turned out ok for Jonah."

Current FICO's(by lender) 10/9/12
EX:649, EX:651, TU:683
Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
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Re: DTI question ;-)


S7 wrote:

Well,they didnt count my husbands as a compensating factor either, Dont qualify for anything without that $150.00 per month. No loan for us.


It sounds like they gave up and didn't fight for you...   How bad are your husbands scores?


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
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Established Contributor
Posts: 568
Registered: ‎08-24-2012
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Re: DTI question ;-)

HORRIFIC. LOTS and LOTS to do on his report. Smiley Sad

They said without that $150.00 per month, my DTI ratios were really high, I guess pairing the house payment with the $298 auto?  Devastated.

"When you are down in the mouth, remember, everything turned out ok for Jonah."

Current FICO's(by lender) 10/9/12
EX:649, EX:651, TU:683
New Contributor
Posts: 73
Registered: ‎07-29-2012
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Re: DTI question ;-)

Don't be discouraged.  There's a lot of help in these forums and folks have tons of knowledge and will be more than happy to lend support and lots and lots of ways to get your credit cleared.  You may want to start hanging around the Credit Rebuilding forum for making those first steps.  Things that I didn't even know about helped me out.  It may take some time, but before you know it, both you and your DH will be shining stars for your new house.  I had to adjust my timeline a bit to clean up my credit, but it is worth it.

Established Contributor
Posts: 568
Registered: ‎08-24-2012
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Re: DTI question ;-)

Oh i have, and I brought my score up from high 500's to a mid of 651. But, I had very little to get cleared up on mine. His is awful, and will take a long time. We wanted to go off one income anyway to keep payments low and whatnot, but here we sit. Anyways, thanks for all the help Smiley Happy

"When you are down in the mouth, remember, everything turned out ok for Jonah."

Current FICO's(by lender) 10/9/12
EX:649, EX:651, TU:683
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Posts: 13,897
Registered: ‎04-15-2011
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Re: DTI question ;-)


webhopper wrote:

S7 wrote:

Well,they didnt count my husbands as a compensating factor either, Dont qualify for anything without that $150.00 per month. No loan for us.


It sounds like they gave up and didn't fight for you...   How bad are your husbands scores?


+1   It seems like they gave up on you too easy.

Starting Score: 504
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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
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Registered: ‎03-06-2010
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Re: DTI question ;-)

[ Edited ]

I don't think its the lender that has given up easily. Maybe their lender overlays are more strict than another lender might be for the same amount.

OP, what you might want to do is speak to a mortgage banker and get the actual info for your ratios.  An experienced loan officer can do all of that for you without running your credit initially. The ratios are strictly math based on the income and expense. You didn't give us enough info to help you, but just based on your initial post I would say your car payment killed any sort of financing. If that is the whole issue then have your husband refi the vehicle into his name alone. Before you do anything though speak directly with a knowlegable LO so they can show you what your ratios are now and where they need to be in order to accomplish where you want to go. Remember, mortgage bankers are going to allow a higher back end ratio than most of the big box lenders today. If you're still too high for the bank end then sell your vehicle and get something for cash (provided that helps with your ratios).

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