topic Re: How much could I be approved for. in Mortgage Loans

How much could I be approved for.

Cmroberts82 — Thu, 16 Jul 2020 06:26:13 GMT

So i got my mortgage score up high enough for a usda loan. I was wondering if someone could help determine what I could be approved for. Thanks in advance. My middle score is 645.

Here is ny monthly bills.

Auto1 $508. 5 payments left

Auto2 $328. Just opened last fall

1 cc reporting $25

Personal loan $210

Personal loan $550

My income is 60k

Please help with what you think i could qualify for. Thanks

Re: How much could I be approved for.

Anonymous — Thu, 16 Jul 2020 17:32:40 GMT

For starters it would depend on which Loan you're going for, so i would suggest going to their website and filling out the qualifier questionaire to find out where you stand. Based on info that I'm aware of you look good in terms of DTI.

Re: How much could I be approved for.

Anonymous — Thu, 16 Jul 2020 18:11:42 GMT

On their website you can put your income in, household size, and any monthly bills you have and they will give you an estimated amount that you would be eligible for.

Re: How much could I be approved for.

VALoanMaster — Thu, 16 Jul 2020 18:15:18 GMT

@Cmroberts82 wrote:
So i got my mortgage score up high enough for a usda loan. I was wondering if someone could help determine what I could be approved for. Thanks in advance. My middle score is 645.
Here is ny monthly bills.
Auto1 $508. 5 payments left
Auto2 $328. Just opened last fall
1 cc reporting $25
Personal loan $210
Personal loan $550

My income is 60k
Please help with what you think i could qualify for. Thanks

Hi @Cmroberts82 ,

With the $508 car loan excluded, you're looking at around $185,000 depending on taxes, insurance & the rate.

USDA has really tightened up over the last several years so your debt to income ratio needs to be under 45%.

So if you take your monthly income, $5,000 X 45% = $2,250 is the total amount of your income that can go towards you debt & the housing payment. Now let's add up your debts. $328+$25+$210+$550 =$1,113. That means you have about $1,137 available for your housing payment.

Does that make sense?

Re: How much could I be approved for.

JOrtiz0629 — Thu, 16 Jul 2020 19:32:36 GMT

@VALoanMaster wrote:
@Cmroberts82 wrote:
So i got my mortgage score up high enough for a usda loan. I was wondering if someone could help determine what I could be approved for. Thanks in advance. My middle score is 645.
Here is ny monthly bills.
Auto1 $508. 5 payments left
Auto2 $328. Just opened last fall
1 cc reporting $25
Personal loan $210
Personal loan $550

My income is 60k
Please help with what you think i could qualify for. Thanks

Hi @Cmroberts82 ,

With the $508 car loan excluded, you're looking at around $185,000 depending on taxes, insurance & the rate.
USDA has really tightened up over the last several years so your debt to income ratio needs to be under 45%.
So if you take your monthly income, $5,000 X 45% = $2,250 is the total amount of your income that can go towards you debt & the housing payment. Now let's add up your debts. $328+$25+$210+$550 =$1,113. That means you have about $1,137 available for your housing payment.
Does that make sense?

@VALoanMaster Just popping into this thread to say this was incredibly helpful to me in regards to DTI in general. Thank you!

Re: How much could I be approved for.

Cmroberts82 — Mon, 20 Jul 2020 06:13:05 GMT

Thanks for the insight. I do have a question about the 508 auto loan does that just automatically get looked over or do you have to ask for it. Thanks in advance.

Re: How much could I be approved for.

Citylights18 — Mon, 20 Jul 2020 14:38:31 GMT

@Cmroberts82 wrote:
So i got my mortgage score up high enough for a usda loan. I was wondering if someone could help determine what I could be approved for. Thanks in advance. My middle score is 645.
Here is ny monthly bills.
Auto1 $508. 5 payments left
Auto2 $328. Just opened last fall
1 cc reporting $25
Personal loan $210
Personal loan $550

My income is 60k
Please help with what you think i could qualify for. Thanks

If your monthly gross is 5k and your payments are $1621 that is 32.4% tacked onto the back end of any ratio you try to come up with.

Paying off the existing car payment will help and there might be a way to refi the personal loans together at a much lower rate. That could probably cut those payment obligations in half which would go a long ways.

I'd just be looking at getting those minimum monthly payments down fist before I'd go out on the prequalification trail.

Re: How much could I be approved for.

Anonymous — Mon, 20 Jul 2020 16:20:13 GMT

What is the standard DTI used for a VA loan?

Re: How much could I be approved for.

VALoanMaster — Wed, 22 Jul 2020 16:35:47 GMT

@Cmroberts82 wrote:
Thanks for the insight. I do have a question about the 508 auto loan does that just automatically get looked over or do you have to ask for it. Thanks in advance.

Hi @Cmroberts82 ,

No, it does not automatically get excluded. Given that you're within 5 months of it being paid off & given your debt to income ratios, basically you'll need to have it close to paid off before you close on a home loan.

Does that make sense?

Re: How much could I be approved for.

VALoanMaster — Wed, 22 Jul 2020 16:40:14 GMT

@Anonymous wrote:
What is the standard DTI used for a VA loan?

Hi @Anonymous ,

There isn't really a standard DTI for VA loans, per say.

As long as you meet the residual income requirements & you receive an AUS approval, the DTI can pretty much be whatever.

I've had Veterans approved with DTIs as high 74%.

Some of this has changed due to COVID19 with some investors adding overlays.

Re: How much could I be approved for.

skigirl916 — Wed, 22 Jul 2020 21:26:22 GMT

41%. I saw another post saying "it's whatever, really," and that is just not true. If it's higher than 41%, you're going to need a VERY strong credit profile.

Re: How much could I be approved for.

VALoanMaster — Wed, 22 Jul 2020 22:56:14 GMT

@skigirl916

Thats a common misconception but I assure you my previous post is accurate. I'm a VA specialist with 19 years experience as a loan officer.

Re: How much could I be approved for.

Anonymous — Thu, 23 Jul 2020 00:13:38 GMT

@Citylights18 wrote:
Paying off the existing car payment will help and there might be a way to refi the personal loans together at a much lower rate. That could probably cut those payment obligations in half which would go a long ways.

Wouldn't a refi constitute an app for new credit? If so, that's generally frowned upon in the 6-12 months leading up to a mortgage app.