09-21-2012 10:17 AM
Hello I was wondering if anyone with lending experience can help me. I have a mortgage broker who is telling me he will have no problem getting me approved for a FHA loan. Currently my back end ratio will be high as I am unable to claim rental income for a property I own as it has not been six months. He claims he can get me as high as a 56% back end ratio which is too high for me and the loan amount on a 56% ratio is more than I want to borrow. By my calculations my back end ratio would be high though because of the rental income at about 51%. With 85% of the rental income it goes down to 45% which is still high. My broker claims it’s not a problem. I do have a BK and foreclosure and from what I have read that means my file automatically goes to manual underwriting and they have a strict 29/41 rule therefore it would appear I would not be approved for a loan in the amount I would like. Can someone please confirm? Also before I receive the comments I am not biting off more than I can chew. I have run the numbers, tracked expenses for the last 6 months, etc. I also have over 50% equity in my rental property and would not have a problem selling it for over 100K profit if needed.
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