12-06-2012 10:51 AM
Credit: 679 My Fico score
1 credit card account closed – last 90 day late Jan ‘08
1 collection acct = Paid in Full - $100 medical bill Paid Nov 07
All other credit card accts are either Paid in Full or below 10% utilization – No lates
Income: $54,500 annual income
Source of Income: Employment
Monthly Debt Payments: Student Loans $142.00, Car $390, Personal Loan: $289
Employment: Full-time employee
Assets/Reserves: 45,000 (401K and savings)
Location: Gaston County, North Carolina
Property: Single Family Brick Ranch
Value: 175,000 – 200,000
Occupancy: Primary Residence
Transaction Type: Purchase
12-06-2012 11:56 AM
Based on the info you provided; I don't see any reason why you would be denied.
12-06-2012 12:35 PM
Yes you do. However, you need to check your middle xredit score. Lenders use the middle credit score and not the highest or lowest of the three.
12-06-2012 12:51 PM
You might want to calculate your back-end DTI ratio by estimating the PITI payments plus the monthly obligations you listed. A lot of lenders want this DTI below 36% unless there are compensating factors.
12-06-2012 06:04 PM
12-07-2012 05:07 AM
I don't know if the home you are looking at is in a USDA eligible area; but if it is, and you don't exceed the income limits, you should look into a USDA Guaranteed loan. They allow a higher total debt ratio (41%). Here's the eligibility site: http://eligibility.sc.egov.usda.gov/eligibility/we
12-07-2012 06:47 AM
Thank you all for the great information and advice. I will definitely check into the FHA and the USDA programs. These forums are great and the contributors are always very helpful!
12-10-2012 01:22 AM
+1 My broker was willing to go to 55% back end with FHA, but I wound up coming in right at 50%. I had strong compensating factors as well, including income from other sources that couldn't be counted (not court-ordered).
Im doing FHA and our ratio is over 50 percent.
12-10-2012 02:43 AM
I'm doing VA and my DTI is around 51-52%.
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