Hello-
I am preparing to apply for a mortgage through a broker in town who originates RD loans through Chase. The following is my information:
Salary- $64,300/yr
FICO- 756 (there is are NO derogatory data in my credit file, i.e. lates, collections, judgements, etc.)
Student Loans- $235/mo
Personal Loan- $235/mo
401(k) loan- $432/mo (actually 403a accounts, I think. The non-profit equivalent)
No revolving credit owed at this time
I also have another $27,000 in my 403a. The rest is tied up as collateral for the loan I took out.
I have read the lender manuals for Chase, FHA, GMAC, Freddie Mac, and Fannie Mae and they all state that debt that is collateralized and could be paid off by liquidating the capital (specifically mentioned 401(k) loans) do not have to be included in the DTI. I also know that a gap sometimes exists between practice and policy especially in today's financial situation.
With the 403(a) loan included in DTI, we are short a bit in being able to buy the homes in the price range we are looking. For those of you out there who actually originate loans or any who have been in the same situation, will the 403(a) loans be included in the DTI by the underwriter? If so, based on the above information, how flexible are the ratios? I am I missing anything with this at all?
For those who may be concerned about us trying to extend ourselves too far, our intent is to pay off the personal loan with the $7500 tax loan and the student loans will be paid off in two years. We intended to wait but we just want to take advantage of this great market and great interest rates.
Thanks in advance for your assistance.
