topic Re: DTI Question in Mortgage Loans

DTI Question

Anonymous — Thu, 12 Jun 2008 19:43:31 GMT

Am I calculating this correctly?

Monthly Income - 4,000

Debt -

CC monthly mim pmts - 170.00

loan monthly pmt 40

car loan 180

Current DTI is 9.75 .....is this correct?

If I had a house pmt at 1500, then my DTI would be 47.25% .......which is considered to high????

With my credit cards being low minimum payments .....paying off any of these wouldn't really help anything

Visa - min pmt 15.00

Visa - min pmt 15,00

visa - min pmt 100.00 .....(owe a little to much to pay this down while keeping money for down pmt and closing costs)

target - min pmt 10.00

CU Loan - min pmt 40.00

CU visa - min pmt 30.00

My minimum pmts are so low, I don't really think paying any of these down are going to help with the DTI ratios ..........am I overlooking something? Has anyone been FHA approved w/ a 47.25% DTI?

Re: DTI Question

Anonymous — Thu, 12 Jun 2008 20:14:48 GMT

you want to stay under 20% is the general rule

Re: DTI Question

Anonymous — Thu, 12 Jun 2008 20:23:27 GMT

yes, that's the general rule, but I believe there have been instances where people have been approved for a MTG with DTI's higher than the 23% ....am I wrong?

Also - I assume since my mim cc pmts are already so low, paying them down wouldn't really help anything ...meaning ...getting rid of a 30.00 payment really isn't lowering the DTI to much

Re: DTI Question

Anonymous — Thu, 12 Jun 2008 20:28:37 GMT

We discussed our DTI w/ our lender & are not going FHA.. our DTI is exactly 47% w/ our proposed mortgage am't & she said FHA won't go for it. Try USDA if it's available in your area.

Re: DTI Question

Anonymous — Thu, 12 Jun 2008 20:39:28 GMT

I think FHA was my only option right now due to medical collections

Re: DTI Question

Anonymous — Thu, 12 Jun 2008 21:15:59 GMT

According to the FHA website they use 28/35....but you can go higher than that.

If anyone stayed at 20% no one could afford a house.....

I've heard a lot of people using 31% / 43% to figure theirs out.

Message Edited by 1111mel on 06-12-2008 02:15 PM

Re: DTI Question

Anonymous — Thu, 12 Jun 2008 21:19:08 GMT

So, I assume that means that 47 is to high.

Sad thing is ......it's me and my fiance ...getting married in Aug but I can't use his income, even thought we have joint checking account, all money is "our money", but he has a judgement so I can't use his credt ........therefore, can't use his income.

My child support will stop next year and therefore, they won't include my child support income either.

My fiance looked at re-financing his vehicle which is currently in my name due to his credit situation, they CU said they could do it with a co-signer ...great, right? HA HA HA .....the joke was on me for getting excited, his father offered to co-sign but his credit isn't that great either because they would only finance up to 3900, and the pay off is 5100 ......ha ha ha ha

My LO tells me not to worry this will go through with this other lender (turned down by first lender) ...but I'm honeslty losing faith in her .......why did she say my DTI was 43% ????

Re: DTI Question

DallasLoanGuy — Fri, 13 Jun 2008 01:41:02 GMT

rbbyrbsn wrote:
you want to stay under 20% is the general rule

wrong

Re: DTI Question

DallasLoanGuy — Fri, 13 Jun 2008 01:42:24 GMT

ivyalmighty wrote:
We discussed our DTI w/ our lender & are not going FHA.. our DTI is exactly 47% w/ our proposed mortgage am't & she said FHA won't go for it. Try USDA if it's available in your area.

for a manual underwrite, maybe.

i have 2 loans approved at 48 & 50% total expense debt ratios right now. just waiting out the inspections to process

Re: DTI Question

Anonymous — Fri, 13 Jun 2008 01:45:33 GMT

Dallas - hmmm.....I wonder why I've having a hard time with mine .........any ideas? Our does it all depend on the underwriter or weather or not it made it through automatic underwriting?

Mine has to go through manual underwrite ....mabe that's the difference?

Re: DTI Question

DallasLoanGuy — Fri, 13 Jun 2008 01:53:54 GMT

thesedays wrote:
Dallas - hmmm.....I wonder why I've having a hard time with mine .........any ideas? Our does it all depend on the underwriter or weather or not it made it through automatic underwriting?

Mine has to go through manual underwrite ....mabe that's the difference?

manual has published debt ratios of 31/43 (front/back ratios). very few times can you go over these.... must have strong compensating factors.

Re: DTI Question

Anonymous — Fri, 13 Jun 2008 02:06:36 GMT

That's what I thought ......therefore, I'm a little upset with my LO. She knew my situation .....she ran the numbers .....had my income statements, paychecks, W2's, ESOP statements, gift letter for money for down payment, VOE, credit reports and new what my debt calculations were.

I don't understand how she could have ALL information, send me a pre-approval for 170,000 ....let me make an offer an a house for 169,900 .....pay for all inspections and appraisals (700.00) and give 1,000 earnest money when she HAD to have known my debt ratio was to high.

She said she calculated my YTD gross income with my debts and my DTI was at 43 ....but when I use the calculators on line .....they all read about 47,

My YTD gross right now is around 23,000 ......so this year I will make around 50,000 .....I have a car loan (which isn't mine but in my name) for 180.00 per month ....one installment loan at 40.00 per month and 170.00 per month in credit card bills ......with a house payment between 1,400 - 1,500 ....which is what I pay in rent now ...for 2 years, never late (provide cancelled checks proving this) ....she still would have HAD to know that my debt ration wouldn't pass though .....don't you think?

Message Edited by thesedays on 06-12-2008 07:06 PM

Re: DTI Question

DallasLoanGuy — Fri, 13 Jun 2008 03:52:37 GMT

thesedays wrote:
That's what I thought ......therefore, I'm a little upset with my LO. She knew my situation .....she ran the numbers .....had my income statements, paychecks, W2's, ESOP statements, gift letter for money for down payment, VOE, credit reports and new what my debt calculations were.

I don't understand how she could have ALL information, send me a pre-approval for 170,000 ....let me make an offer an a house for 169,900 .....pay for all inspections and appraisals (700.00) and give 1,000 earnest money when she HAD to have known my debt ratio was to high.

She said she calculated my YTD gross income with my debts and my DTI was at 43 ....but when I use the calculators on line .....they all read about 47,

My YTD gross right now is around 23,000 ......so this year I will make around 50,000 .....I have a car loan (which isn't mine but in my name) for 180.00 per month ....one installment loan at 40.00 per month and 170.00 per month in credit card bills ......with a house payment between 1,400 - 1,500 ....which is what I pay in rent now ...for 2 years, never late (provide cancelled checks proving this) ....she still would have HAD to know that my debt ration wouldn't pass though .....don't you think?

Message Edited by thesedays on 06-12-2008 07:06 PM

let me tell you a little story about a man that i no longer work for.......

he told me: "just say yes. get it in the door and we will find a way to get it done"

uh.... he sucks... and it sounds like your loan officer might have gone to the same school of 'yes men' loan officers.

put your file in front of someone who will shoot you straight!!!

Re: DTI Question

Anonymous — Fri, 13 Jun 2008 15:03:42 GMT

This is not good news for me. She's putting the loan through another Lender now and, of course, again, she's "sure there wont' be any issue" ....because "she's never seen an underwriter calculate income they way the other one was" ........hmmmmm

If this one doesn't go through ....and I'm thinking it's not going to, I'm going to throw in the towel and start all over.

I guess rent for another year, save some more money and try again next year. Hopefully it will still be a buyer's market.

Message Edited by thesedays on 06-13-2008 08:03 AM

Re: DTI Question

Anonymous — Sat, 14 Jun 2008 01:40:01 GMT

I wish I knew the details, but we just got approved and closed for our house wich a much higher dti than the 30%'s... cannot remember exactly what, but I think in the low 50's??? We could not use all of DH's income, and were still able to get approved.

Re: DTI Question

DallasLoanGuy — Sat, 14 Jun 2008 03:13:53 GMT

thesedays wrote:
This is not good news for me. She's putting the loan through another Lender now and, of course, again, she's "sure there wont' be any issue" ....because "she's never seen an underwriter calculate income they way the other one was" ........hmmmmm

If this one doesn't go through ....and I'm thinking it's not going to, I'm going to throw in the towel and start all over.

I guess rent for another year, save some more money and try again next year. Hopefully it will still be a buyer's market.

Message Edited by thesedays on 06-13-2008 08:03 AM

your loan officer may be ok.

or they may be an idiot trying to force a round deal thru a square hole.

you should put your income docs in front of another LO to see if they calculate the income the same.