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do we qualify?

Valued Member

do we qualify?

Here are the numbers...middle score is 602..make $4k a month with $1100 in car debt. Looking at a house in Houston Texas at $108k. Can we get qualified for that amount or at least $102-105k? My husband also gets $800-$1000 in bonuses monthly but they are cash and not taxed. Can we use this amount.  
3 REPLIES
New Member

Re: do we qualify?

DTI caculation is your first step......
 
A FHA loan is 29% at the  front end 4000 * .29 = 1160
A FHA Loan is 41%  at the back end 4000 * .41 = 1640
This means you could have a loan of 1160.00 but since you have 1100 dollars in car payments you could only afford a home for 1640-1100 = 540.00
 
I understand you say that  your husband makes a bonus every month of 800-1000 however this brings a couple of concerns.... this is a substantial amount of money that is not reported as income in your taxes, it can be very determintal once the underwriter looks into your W2's. It is also very hard to prove cash transactions unless you immediately deposit the money into a bank account around the same time every month, and the employer has proper documentation to prove these bonuses are part of your husbands steady income. However if we you the same caculations as before but add 1000 dollars to your income. You could than afford 950.00 a month. A FHA loan for 105,000 with 3% down and a 6.1% APR would be about 617.21 so depending on you property tax, home/PM insurance you might be above the DTI still.
 
I think the thing hurting you the most is the whopping 1100 dollar car or cars you have....
 
I hope this helps......                      
                               
 


Message Edited by musiqdefunk on 05-05-2008 01:09 PM

Message Edited by musiqdefunk on 05-05-2008 01:11 PM
Valued Member

Re: do we qualify?

So are are over the DTI? Even if we give 3% down we can't qualify for more?
Super Contributor

Re: do we qualify?

I have see some approvals up to 50% DTI lately. It can accept you over the published manual underwrite DTI limits of 31/43. So you might get real close to that amount.
Will depend on insurance/taxes..... and whether you have anything else besides th car loans on your report.
If you can put down a little more than the 3% then it gives the loan officer a little room to tweak your file in automated underwriting for approval.
 
Retired Lender