topic Re: Quick way to reduce DTI to qualify for a mortgage? in Mortgage Loans

Quick way to reduce DTI to qualify for a mortgage?

Anonymous — Wed, 30 Nov 2016 02:17:47 GMT

Other than paying off my Student Loans or making more money, any quick ways to lower my DTI to qualify for a mortgage. 433/m SL payments and 5000/month income. Shooting for 350k mortgage in my name only to qualify for 1% down. DW will be purchasing with me but we're not using her income so we can qualify. We have no consumer debt and no auto loans.

Re: Quick way to reduce DTI to qualify for a mortgage?

StartingOver10 — Wed, 30 Nov 2016 12:29:58 GMT

@Anonymous wrote:
Other than paying off my Student Loans or making more money, any quick ways to lower my DTI to qualify for a mortgage. 433/m SL payments and 5000/month income. Shooting for 350k mortgage in my name only to qualify for 1% down. DW will be purchasing with me but we're not using her income so we can qualify. We have no consumer debt and no auto loans.

I am a little confused with your statement above ^^ - you mention you aren't using your wife's income so you can qualify. This usually means either she has income, but can't verify it or her income is from self-employment and she shows a loss on her taxes, rather than a profit. In any event, there are only two ways to fix a DTI problem:

increase income
decrease debt

Since you have no debt other than your student loans, and you want to leave your wife's income off the table, you would need to adjust the only other factor available - the mortgage amount of the home you wish to purchase. You can do that by putting down more $$ or buying a less expensive home. You will need to check the real estate taxes, building insurance and HOA fee's (if any) to see where it puts you DTI-wise.

Re: Quick way to reduce DTI to qualify for a mortgage?

DallasLoanGuy — Thu, 01 Dec 2016 16:11:46 GMT

@Anonymous wrote:
Other than paying off my Student Loans or making more money, any quick ways to lower my DTI to qualify for a mortgage. 433/m SL payments and 5000/month income. Shooting for 350k mortgage in my name only to qualify for 1% down. DW will be purchasing with me but we're not using her income so we can qualify. We have no consumer debt and no auto loans.

this is an income based program? you make too much if you disclose BOTH incomes?

most of those programs use household income to qualify.... not just what is verified on the loan ap

Re: Quick way to reduce DTI to qualify for a mortgage?

Anonymous — Tue, 06 Dec 2016 19:17:57 GMT

There are very few programs that don't use household income. The one program I know that does not use household income still considers all income for all borrowers on the loan. I would double check the program guidelines with your lender.