Anyone know the DTI requirements for NFCU?

ejm201 · ‎07-20-2017

Planning to order the 3B scores again on Friday(for an update). God willing can get that pre-approval letter!

Wanted to make sure does NFCU calculate DTI separtely i.g, frontend/backend or just a single DTI like with VA loans. I hear the lower the DTI the easier to UW.

Thanks!

Surge89 · ‎07-20-2017

No experience with NFCU, but DTI is mostly (if not, always) calculated for Backend meaning it includes your total mortgage payment. Underwriting like the lower DTI because it comes down to your ability to repay the mortgage and still having some extra cash for any other things. The lower it is, the more flexibility you have in acquiring other loans for home improvement, renovations, additions, etc.

Underwriters have an easy file when your whole applications is all basic info. IE. One bank account, no large deposits in the last 2 statements, one job, no business. Simply because the less they have to underwrite, the faster the file goes through to closing.

ejm201 · ‎07-20-2017

Cool, that definitely helps! If it's only front end and/or back end,then I should be good. I calculated that my single DTI should be 43-45% worst case. Best case scenario would 38%.And this is based off my std. student loan pmt is $350but IBR is actually $56 mainly b/c I pay my wife's one untilshe starts working this Fall. So the loan itself would be based off really conservative numbers.

Surge89 · ‎07-21-2017

50% DTI will soon (end of July I believe) be the new limit for conventional Fannie Mae loans that run through the DU system. Now it's 43% but lenders will go to 45%. Will you be applying with your wife?

ejm201 · ‎07-21-2017

Unfortunately no, due to us both agreeing to it being financially beneficial for her to be a SAHM. Although, that will be changing in the near future.

But just to update you, we pulled the 3B scores and EQ 595, TU 613 & EX 614...FICO 8 goes up literally 30 points and mortgage went up 10pts in 3 months.

We are starting to want to give up on home ownership(feeling a little negative today). Moreso her. Trying to be positive but she is quite upset. Mainly because finding a decent priced home in MD in a safe neighborhood is really HARD to come by.

Surge89 · ‎07-21-2017

@ejm201 wrote:
Unfortunately no, due to us both agreeing to it being financially beneficial for her to be a SAHM. Although, that will be changing in the near future.

But just to update you, we pulled the 3B scores and EQ 595, TU 613 & EX 614...FICO 8 goes up literally 30 points and mortgage went up 10pts in 3 months.

We are starting to want to give up on home ownership(feeling a little negative today). Moreso her. Trying to be positive but she is quite upset. Mainly because finding a decent priced home in MD in a safe neighborhood is really HARD to come by.

Why feeling negative? I went over to NFCU website to check the loan programs and they offer all types. There are not a lot of lenders that offer FHA minimum of 500, but all others want 580 (which you fall under) for 3.5% down but NFCU does 0%. Your interest may be a bit higher but if you have a good amount of reserves (for down payment and/or closing costs) and if you have explanations for any dings in your credit report, you should be good to go.

Oh, and finding a home that you like is another story...

ejm201 · ‎07-21-2017

I don't like seeing my wife upset. When she cries it bothers me a little but still trying to stay positive for her. We want to pull, we just risk losing the same boost it took us 3 months to get. So we want to pull but don't want to pull at the same time. We do have one more card to bring to 9% UTI that I think could get us another 10 points but the balance is $850/1500 and with school starting, I couldn't pay to 9% until September.

And thanks, that means a lot. 3.5% we can save but it would take well over 2 years and by then the 3.5% wouldn't be enough for the home prices. Plus by then for prime, the interest rates will be around 5% or so. Follow the markets heavily.

Also do you know if asking for a CLI lowers your score? We have a joint card that we are supposed to get an auto increase from $500 to $750 in November but was thinking maybe I could ask for $2500 instead.

And yes finding the home within budget is definitely another story. 😉

Anonymous · ‎07-23-2017

I am sorry she is feeling this way. There are ways you can probably increase your score in less time. We had a huge increase because we have no accounts in good standing. Only. a car loan with TERrIBLE late payments. So bringing down CC utilization to 1-8%. Credit line increase will be great because it brings down your debt to credit ration. Also perhaps a to a oath loan with them NFCU to show good character. Perhaps someone can add toy to their really old account that are in great standing of course. Sorry if this looks terrible typing from my phone. Those are a few ideas wishing you the best. Also get rid of collections if you have any do pay to delete letters. Disputing south out be great right now if you're going to buy immodestly.

ejm201 · ‎07-23-2017

Typos, we all make them and often times Android does it for me.

Thanks, much appreciated! I think once my Capital One card reports $0(which would bring 3 of 4 cards to zero), that will be another month the acct has aged and may give us another 5 pts. Across the board. Although it seems like Equifax, at least for my file is LESS forgiving.

To put things in perspective, I checked an old lender pull from May and here are the changes as of July 21:

(May--->July)
EQUIFAX: 585-----595
TransUnion:.602------613
Experian:. 562------614

As you can see, Equifax barely budged EVEN after removing a judgement error(which mind you costed my 680 score 50 points)!!! Aren't the CRAs supposed to return the SAME points you lost? It took me almost 4 years of fighting to remove this **bleep** thing.