We currently have a contract for a house being built contigent our house in TN sells. The current house was VA and this one being built will be VA. Current house principle balance is 156000. One being built is 222000 and thinking about putting like 5-6k down just to drop the loan amount. My question is if my house does not sell is it remotely possible to use DTI and residual income iot close on the house being built. I am using just my income becaus eI have the better credit score. Wife makes 5500 every two weeks but credit is a little shotty. Here are the facts
gross income $5900/month
TU score 692
EQ score 683
current mortgage $1154
car payment $661
CC payment $150/month
Now for residual income it amounts to $1789 way over VA amount of $736
Like I said earlier income from me wife will not be included into loan so I will not be living paycheck to paycheck but of course we can not use her income because she is not on the loan. Please tell me what you guys think.
Starting Score: 690
When figuring your DTI ratio without selling your original house you need to add in not only the mortgage payments on both homes but also taxes, insurance, and HOA (if applicable) in addition to utilities. When you start adding it up your DTI ratio quickly runs over 100%. If you are thinking about leasing out the first home I think some lenders will give you credit for 75% of the lease amount if you have a signed lease.
Current mortgage is 1154 includiing PITI and new one will be 1490 inlcuding PITI.I was my understanding that DTI is all minimum payments on CR divided by gross income. Roughly comes out to 55% which is over VA max(i think) of 41%
