I am currently preparing to apply for an FHA Construction Loan in July. Our GC is preparing the construction costs in order to take to the bank. I just want to check to see if I'm calculating an approximate payment correctly and what I can do about the possibility of having too much DTI based on my income.
Scenario:
| Cost to build | 146,000.00 |
| Land | 17,000.00 |
| | 163,000.00 |
| 5% down | (8,150.00) |
| loan amount | 154,850.00 |
Based on a loan amount of $154,850 plus 2.25% = $158,334.10
Amortized 30 years @ 5.75% = 903.55 P&I
Taxes & Insurance (est.) $150.00
Monthly MIP - .50% = $64.52
Estimated monthly payment - $1,118.18
PITI - $1,118.18 + 430.12 auto payment = $1,548.00 - DTI .4644
I believe FHA is 41% (back end) DTI. If my calculations are correct, is there anyway I can be approved with the .46 DTI.
My income $40,000/ annual. My husband is $98,000/annual but we cannot use him on the loan as his credit is destroyed. We plan on paying some of the construction costs out of pocket and not taking draws on the amount requested. That is the part that I am confused about and how to get my DTI within the FHA approval limits. If we pay out of pocket and the final loan amount is much less do they take that into consideration?
Any advice would be appreciated.
