Relocation married mortgage question?

[Anonymous]

I am moving to New Jersey where the housing is extremely expensive. I called Countrywide, who we currently use and have had no problems with, and asked what was the highest DTI they allowed. The rep said up to 52% if you put 10% down (700 mid) and 52% with 5% down and PMI (680 mid) doesn't that seem high?

The reason I ask is I want to try to get the loan in my wife's name only. Her scores are 686,698,712 with only 1 student loan payment $147/mo and 1 0% credit card until 09' with no min. due. Her income is 6K a month which should allow for a large mortgage, correct.

My scores are much lower 610, 631, 646 because just about everything is in my name 9k in CC debt 35% usage, 3 car loans totalling 27K, 1 late in the last 12months because I'm a idiot!!!. So, I'm thinking if the MTG will use my lower mid the rate will skyrocket.

Any advice on what to do here?

2nd question is we will only be living here 3-5yrs what type of loan should we look for? We may be forced to do a 30yr fixed since this is a paid company move though.

Thanks,

Message Edited by jasil on 03-30-2008 11:01 AM

[ShanetheMortgageMan]

Unless you are putting down a significant chunk of money I'd really just suggest you go with a 30-year fixed, you don't want to be caught in a situation where values have declined and you are in an adjustable rate mortgage where you need to refinance but perhaps can't because mortgage qualifications have tightened up or you don't have as much/enough equity.

52% debt ratio can qualify if there are good compensating factors (strong credit, good down payment, good reserves), so it is higher than normal, but not out of the question to still be able to qualify.  What is odd is that the 52% figure was given, such an odd number... automated underwriting approves debt ratios up to 64.99% as an FYI.

You might still be able to both be on the loan and use an FHA loan as the purchase - that would be an option I'd look into if your wife can't qualify on her own.  1 late in the past 12 months, with somewhat decent credit scores (630's is decent), still has a good shot of qualifying.