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FHA Limit Question?

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BrianB_The_Loan_Professor
Valued Contributor

Re: FHA Limit Question?

...... as long as the DTI is in line the approval guidelines for a 15 are the same as  a 30

If you can afford it and are comfortable with the payment the 15 is the way to go -you will also get a better rate than the 30

If it is marginal and you are unsure about the payment working in your budget you could always go with the 30 and calculate what the 15 year payment would have been and send that in every month - that way if funds are tight at any given time you always have the option to make the smaller 30 year payment

 

Good Luck

Brian

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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 11 of 14
Hooosier
Contributor

Re: FHA Limit Question?

Is health insurance considered when calculating DTI?  Being self-employed our health insurance premiums are rather high - $750 per month...would this be a factor they would consider?

Message 12 of 14
KAISMOM
Contributor

Re: FHA Limit Question?

Excellent question, curious myself as I'm also self employed and hoping to buy a house next yearSmiley Happy My impression is this would not factor into the DTI ratio as it can be written off the following year anyway. I'll be paying $433 (w/ subsidy) for myself and my child, and if that were to be factored in I'd never be able to buy a house! Either that or go w/o health insurance. Interested to hear from underwriters, real estate, banking folks. But my hunch is we're okay. Car & student loans are reported to credit agencies as an installment loan/debt whereas our monthly health premiums are not "debts" so therefore aren't factored in.

 

 


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Message 13 of 14
ShanetheMortgageMan
Super Contributor

Re: FHA Limit Question?

Nope, health insurance (and other insurance, other than homeowners insurance) isn't included in the DTI.

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Message 14 of 14
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