topic Re: FHA & DTI Question in Mortgage Loans

FHA & DTI Question

bigman023 — Tue, 09 Dec 2014 15:07:19 GMT

I will soon be applying for an FHA Loan. My DTI is heavily impacted by an installment loan I currently have. Its a 36 month loan and I am in month 22. By the time I ready to apply, I will be approx. in month 28. I have seen a few older articles that state installment loans with less than 10 months remaining are not counted towards the DTI calculations. Is this the case for all FHA lenders or does it vary from lender to lender?

Thanks

Re: FHA & DTI Question

bigman023 — Tue, 09 Dec 2014 16:39:43 GMT

Ahhh.. never mind. I found my answer in another older thread. The 10 month rule is real, but it only applys to loans where the monthly payment is less than $100.

Re: FHA & DTI Question

coterotie — Tue, 09 Dec 2014 16:51:01 GMT

Skin the cat another way. At what point will you owe $1,150 on the loan? Pick that date to do a 12 month refi on the loan. Then one month later do the mortgage loan application.

@bigman023 wrote:
Ahhh.. never mind. I found my answer in another older thread. The 10 month rule is real, but it only applys to loans where the monthly payment is less than $100.

Re: FHA & DTI Question

Anonymous — Tue, 09 Dec 2014 19:23:25 GMT

Wow! good advice!!

Re: FHA & DTI Question

ap84 — Tue, 09 Dec 2014 19:40:29 GMT

That is a very good question. Actually, I just applied last week and I was told the same thing. The only thing is that the loan officer said she could exclude my car payment, which is $435 a month, which is well over $100. Interesting

Re: FHA & DTI Question

DallasLoanGuy — Tue, 09 Dec 2014 22:06:53 GMT

@ap84 wrote:
That is a very good question. Actually, I just applied last week and I was told the same thing. The only thing is that the loan officer said she could exclude my car payment, which is $435 a month, which is well over $100. Interesting

if you had 5 payments of $500 left.... it is always worth a try to get the u/w to reduce bank statement funds by the $2500 and re-run the file excluding the pmt.

i have done this successfully in the past. not lately

Re: FHA & DTI Question

kayvee_ — Sat, 13 Dec 2014 18:22:51 GMT

i think its 10 months regardless of payment amount. i was told the same thing this past week.

Re: FHA & DTI Question

StartingOver10 — Sat, 13 Dec 2014 18:57:10 GMT

@kayvee_ wrote:
i think its 10 months regardless of payment amount. i was told the same thing this past week.

No, it depends on the lender. Some lenders will go 10 months. Some will allow 6 months. Some will allow zero months.

Re: FHA & DTI Question

DallasLoanGuy — Sun, 14 Dec 2014 23:40:03 GMT

@kayvee_ wrote:
i think its 10 months regardless of payment amount. i was told the same thing this past week.

less than 10 months AND less than $100 it can be ecluded

if over $100 then it is included.