FHA and DTI. Two car loans. Please help.

[Yandy]

Hello to all! This is my first time posting and I have some questions in reference to FHA and high debt-to-income ratios. My concern is the two car loans I have under my credit. Both of these loans are under my name only. My father has the second car and on a monthly basis he gives me two of his payroll checks to pay for the car and insurance (Dad has a bankruptcy discharge Nov 2007). I run this checks through a joint account that we have and transfer into my personal checking and then bill-pay the car loan through my bank’s website. My fico score with Equifax is 748 and TransUnion 736. I don’t have any other debt except the $575 car payment (mine) and $507 (dad’s). ? Have been with the same employer for 7 years and last year I did 51k in salary. My monthly gross income is $4360 although right now I am making more money due to over-time pay, this throws me close to $5000.00 but is something new and can’t document. I need to borrow up to $150,000 and have the 3.5% down payment on my savings account, 401k is only $5500.00 took a big hit when company went belly-up. According to my calculations my DTI is close to 53% with both cars but only 41% when doing calculations with what I really pay. Please advice if there is any, on how I can obtain this loan I really need it. We have to move in two months and I am not looking to pay for rent when I can pay the same amount of money for my own house (I live in Miami). Thanks in advance for the help you can give me.

Message Edited by Yandy on 04-23-2009 09:22 PM

[ShanetheMortgageMan]

You qualify with gross income, not net.  Did you mean gross?  If not then run the numbers with your gross income. 

How much are you estimating for taxes & insurance?

[Yandy]

Sorry I meant to say gross monthly income.

[ShanetheMortgageMan]

OK... How much are you estimating for taxes & insurance?

[Yandy]

About $450.00 a month.

[ShanetheMortgageMan]

Your housing ratio is looking great, about 29%, and your scores are great, and if you aren't using the 401k for the down payment then you'd have 2 months PITI in reserves, and that gives your 54% total DTI an excellent chance of qualifying.  I'd have your LO run automated underwriting, I'd be surprised if you didn't qualify.

[Yandy]

Thanks for the quick reply... I hope I get it approved.. Although I though my back-end DTI was too hight for automated underwriting, but I guess I was wrong. Thanks.

[ShanetheMortgageMan]

I've seen back end DTI's into the 60's qualify.

[Yandy]

I'll cross my fingers and wait. Altough it seems like the LO is not giving me much hope.

Message Edited by Yandy on 04-24-2009 09:34 AM

[ShanetheMortgageMan]

We'll give you all of the hope you need here.