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DTI and Current Mortgage

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Ausfarm
Regular Contributor

DTI and Current Mortgage

If we currently have a mortgage but plan on selling after we've got into our new home, is the old mortgage calculated into our DTI?
Message 1 of 4
3 REPLIES 3
ShanetheMortgageMan
Super Contributor

Re: DTI and Current Mortgage

If you are going to be selling before or simultaneously with purchasing a new home, then it wouldn't be included in your debt ratio... if you are going to be selling after you purchase a new home, then it would be included.  In the other post you said you would be building... does this mean you are getting a construction loan to finance the construction of a new home, or does it mean you are buying a home from a builder once it's been completed?
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 4
Ausfarm
Regular Contributor

Re: DTI and Current Mortgage

We will be building a custom home.  We're not buying in a builder's subdivision.
Message 3 of 4
ShanetheMortgageMan
Super Contributor

Re: DTI and Current Mortgage

Since you are going to be taking out a construction loan, lenders will often allow you to offset your current mortgage payment by taking a rental survey of your current home, then applying 75% of that to your income... because they know you'll either be renting it out, or selling it, upon completion of the new home after you are moved in.
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 4 of 4
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