Credit Cards Center Credit cards from our partners
Reply
New Member
Posts: 4
Registered: ‎03-19-2009
0

USDA GRH debt-to-income ratio question, please help

[ Edited ]

For those of you who work with or have received USDA GRH loans, have you ever heard of a 53% debt-to-income ratio gaining approval?

 

I'm asking because we were turned down by one lender for this d:i ratio (with an assumed purchase price of $135K though we do not have a specific property in mind), but it seems that I've read about others with a d:i over 50% being approved by USDA GRH. 

 

If it is within the realm of possibility, or if a slightly smaller purchase price would bring the ratio down, I will look for another lender.  If not, I guess we'll just stay put and try again some other time.

 

I don't think that I know enough about the assumed variables on home price  (taxes, interest) to be able to figure this myself.  I can say that our monthly payment obligations total around $900 with gross income of approximately $4400.  Our mid scores are above 620 but not quite to 700 yet, our income is not over the cap for our area, and other than this ratio, we should qualify.

 

Thanks for your help if you have any insight to offer!

Message Edited by mollop on 05-06-2009 05:44 PM
Message Edited by mollop on 05-06-2009 06:27 PM
mollop
Valued Member
Posts: 30
Registered: ‎04-20-2008
0

Re: USDA GRH debt-to-income ratio question, please help

I have to do the USDA myself (my husband's scores are not high enough) but my LO says that with a score AT OR OVER 620, he can ask for a waiver. I am at like 43-45% so he is getting a waiver. you might want to find a broker who is familiar with the local USDA offfice where you live and ask them to call the office. They will be able to tell you if you can get a waiver for that DTI.

 

P.S. a slightly smaller purchase price might bring you down enough to ask for a waiver! I have to buy one point for my mortgage, but its still a heck of alot cheeper that going FHA

And the cupcake said "when I say Bite ME, I mean it!
Senior Contributor
Posts: 3,299
Registered: ‎04-22-2008
0

Re: USDA GRH debt-to-income ratio question, please help

53% is pretty high.  Usually for this high they will need compensating facotrs such as unusaeble income, very high FICOS, high down payment, or high reserves, etc.  They won't typically lend that much on a standard file. 

It can't hurt to check around though.

 

Also, is there any way to reduce the debt. 

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.