@Anonymous wrote:
We have been told for veterans United to do manual underwrite we'd have to be at 50% DTI since we have good risidual income and other compensating factors such as spouses income coming into home but not being counted on loan.
I'm not sure I understand what you meant by the 20% risidual and breaking down the base pay, bah bad etc
VA requires a minimum amount of residual income based on the family size & geographical location. In order to exceed 41% on the debt to income ratios you have to exceed the residual minimum by at least 20%. So let's say the minimum residual required is $1,000, you would need $1200.
You gave us a total income of $4,956. How much of that is your BAH & how much is BAS?
The real problem is your file is not getting approved through an automated underwriting system which means there is a maximum debt to income ratio that is anywhere from 41% to 50% depending on the lender.
The reason why you're not getting approved through the automated system may be due to the high ratios. One way to fix that is to gross up your non-taxable income like your BAH & BAS.
Here's an example:
Right now we're using a total monthly income of $4,956 & that's getting us a 55% debt to income ratio. If we break down your income into base pay, BAH & BAS it would like this (ESTIMATED): base pay $3,100, BAS $368 & BAH $1,488. We can gross up your BAH by at least 20% so it would go up to $1,785.60 & BAS would go up to $441.60. That would effectively increase the total monthly income to $5,327 which would drop your debt ratio down to to 52%. That's still too high for a manual underwrite but it may be enough to get an automated approval. In addition to that there are a couple of other "tricks" that we can use to try & get an automated approval.
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