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High DTI

New Contributor

High DTI

Has anyone recently gotten an FHA or Fannie/Freddie loan with high DTI? and by high I mean over 50%. I'm afraid when we go to get a loan, even after paying of our CC substantially we won't qualify. Do lenders look at CC debt differently then an auto loan? Most of our debt is going to be auto loans and Mortgage loans. I would hate to have to wait until I pay off my cars in order to get a loan.....

jv
Message 1 of 21
20 REPLIES
Frequent Contributor

Re: High DTI



johnnyv5 wrote:
Has anyone recently gotten an FHA or Fannie/Freddie loan with high DTI? and by high I mean over 50%. I'm afraid when we go to get a loan, even after paying of our CC substantially we won't qualify. Do lenders look at CC debt differently then an auto loan? Most of our debt is going to be auto loans and Mortgage loans. I would hate to have to wait until I pay off my cars in order to get a loan.....

jv

debt is debt they add all of your minimum monthly payments and compare it to your income for your dti.  The only thing different is that for most conventional loans if your auto or personal loans have 8 payments or less, they do not include those in your dti.  Call the bank or broker you would likely apply with to find out their policies because they can change and/or add their own guidelines to fha.  I will assume your car payments are a lot more than your monthly credit card payment so why not pay the cars down to 8 payments or less
Message 2 of 21

Re: High DTI

Our DTI is at 48%. The only debt we have is our auto loan and in order to qualify for our home loan we have to pay it off by close of escrow. 


Message Edited by legallyblonde on 09-12-2008 11:45 AM
Message 3 of 21
Super Contributor

Re: High DTI

by 'over 50%'
do you mean 51 or 52 or 65?
 
refi the cars?
Retired Lender
Message 4 of 21
New Contributor

Re: High DTI



DallasLoanGuy wrote:
by 'over 50%'
do you mean 51 or 52 or 65?
 
refi the cars?





Not over 55%. Unfortunately I just bought the car and my wife's car is a lease. By my calculations it'll be close to 53% w/ the new mortgage.....

jv
Message 5 of 21
Super Contributor

Re: High DTI

apply, it's free.
let us know how it goes.
 
Retired Lender
Message 6 of 21
Senior Contributor

Re: High DTI

would your wife be capable to "buy"out the lease under her name?  this would only work if you are in a non community property state if you were gonna go FHA
Message 7 of 21
New Contributor

Re: High DTI



mickie08 wrote:
would your wife be capable to "buy"out the lease under her name?  this would only work if you are in a non community property state if you were gonna go FHA



Well considering I want to use my wife's income to qualify it would have to stay on her credit. B/W the both of us our DTI is 30% front end and with a new mortgage it's going to go about 53 to 55%..... I guess I'm just going to have to apply when i get the down and see what happens.....

jv
Message 8 of 21
New Contributor

Re: High DTI

For those that have closed recently, what was your DTI w/ the new mortgage?

jv
Message 9 of 21
New Contributor

Re: High DTI

Would a high credit score offset a high backed DTI (b/w 50-55%)?  I am really worried that my DTI is going to kill me when I go to apply for a loan!!!

 

jv

Message 10 of 21