05-06-2009 11:43 AM - edited 05-06-2009 04:27 PM
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!
05-06-2009 04:49 PM
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
05-06-2009 07:07 PM
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.