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DTI and Current Mortgage

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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?
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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?
Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 2 of 4
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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
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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.
Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
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