shannonrobbie wrote:I applied for an FHA loan and was told it was denied for my dti ratio.. I make about 60K and have 676 a month in debt and am trying to by a 140K house with 5K down. My mortgage processor told me that we can get it approved if my parents will co-sign for me (which they have already offered to do) since there credit scores are high enough that it can go thru auto underwritting (scores for them are mid to high 700's).My question is .. is this really possible? They only make a little more money than I do.. and their dti is probably close to the same ..maybe a little lower. How does them co-signing for me help my DTI problem?
shannonrobbie wrote:Thanks for answering.. I thought my DTI wasn't that bad.. but when I asked the processor why it didn't get approved she said DTI was too high for the house I wanted. you didnt talk to the loan officer?After my salary and commissions (which I have been getting for 4+ yrs) I average about 5K a month in pay.. and with my car loan and CC's my debt is $678.My credit scores are not great.. mid is 587 and I have had a few collection accounts on my report.. most of them with last activity from 2005 and older... there is 1 that is 10 months old. I have been employed at the same place since 2001 and in the same type of work for 14 years.. have 5+ years of good rental history at the same house (paying $1020 a month)She told me that to approve me I would need a house that is around 110K.. but the ones I am looking at are 140K... I can afford the payment that goes with that 140K.. but I quess on paper they don't think so.. I am common law married so I have my husband income he can not go on the loan since his credit is really bad and had a judgement .I hope adding my parents to the loan will help
Monthly principal + interest: $943
Monthly tax: $329
Monthly insurance: $59
Estimated monthly payment: $1331
Estimated mortgage insurance: $115
Estimated total payment: $1446
mickie08 wrote:There must be some REALLY high HOA's and or taxes to be at 1500 payment on a 150K house. We are looking at 2500 payment with on a 330K loan with HOA's and 400+ taxes per month. I would ask to see the GFE that the LO put together to come up with that. I would think that any reasonable taxes, etc that the house payment should be alot closer to 1000 than 1500...Maybe in the high 1100's or low 12's.