topic Re: Making up difference with cash in Mortgage Loans

Making up difference with cash

Anonymous — Sat, 27 Jan 2018 00:44:46 GMT

Hypothetically, if my husband and I are approved for a home loan of 200k but the house we want is 240k, can we put a down payment down of 40k (gifted) to make up the difference? If possible, does this work with any amount of house if we can make up the difference?

Re: Making up difference with cash

Anonymous — Sat, 27 Jan 2018 01:14:51 GMT

Yes. The LTV would be way lower, too.

Re: Making up difference with cash

NC_Mtg_Loaner — Tue, 30 Jan 2018 11:07:27 GMT

Don't forget to budget or allocate for the more valuable home to likely increase your DTI slightly as it probably has a higher property tax assesment and cost to insure.

If your DTI is already near its maximum approval at $200k loan, then this could be of concern and it might be more beneficial to research paying off any other debts/liabilities that are impacting your mortgage equation.

In the event that interest rates (sarcasm) SOAR (/sarcasm) higher to 5.0% fixed for 30 years the $40k difference in loan amount would be $200 in monthly mortgage payment increase. One can research paying off an installment loan early or a credit card in order to increase/enhance your buying power.