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Emergency Mortgage Question

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Anonymous
Not applicable

Re: Emergency Mortgage Question

Does the overall utilization <28.9% include all accounts such as vehicle & personal loans? Or solely credit accounts?
Message 11 of 25
DollyLama
Established Contributor

Re: Emergency Mortgage Question

The thresholds are from bad to good 88.9 not 89, 68.9, 48.9, 28.9 and 8.9% (Biggest score bumps come with the last two 28.9 and 8.9), must account for added interest on balances that are carried that will be reported. It affects overall scores, but creditors also look individually, example the Best Buy and Chase are in the danger zones where there is a possibility of adverse action, especially if only making minimum payments and carrying a balance continually, that they will balance chase you (reduce your credit line as you pay down, thus being maxxed out constantly), or worse close the account while having a balance. You want to avoid these at all costs, as both will always affect your overall utilization. 

Message 12 of 25
VALoanMaster
Valued Contributor

Re: Emergency Mortgage Question


@Anonymous wrote:
Thank you for your response. Our DTI is only an issue if we cant get his middle score back up to 620 from 605.
The child support just stopped, Monday will be the first paycheck without garnishment.
The total of his minimum payments including cars is about 1600/mo. My own cards <$300/mo
His projected gross for this year is $115,000
Mine $41,000

Hi Happysamiam2,

 

So your lender requires a 620 score or better for FHA?

Why does the DTI become a problem for you if you score is 605 instead of 620?

 

 

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 13 of 25
Anonymous
Not applicable

Re: Emergency Mortgage Question


@VALoanMaster wrote:

@Anonymous wrote:
Thank you for your response. Our DTI is only an issue if we cant get his middle score back up to 620 from 605.
The child support just stopped, Monday will be the first paycheck without garnishment.
The total of his minimum payments including cars is about 1600/mo. My own cards <$300/mo
His projected gross for this year is $115,000
Mine $41,000

Hi Happysamiam2,

 

So your lender requires a 620 score or better for FHA?

Why does the DTI become a problem for you if you score is 605 instead of 620?

 

 


I don't know the answer to that. He said if he has to qualify under 620 that the DTI would have to be lower than it is now.

Message 14 of 25
VALoanMaster
Valued Contributor

Re: Emergency Mortgage Question

did the LO tell you what your DTI is?

You might have a lender with some conservative overlays that are making things more difficult than they need to be.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 15 of 25
Anonymous
Not applicable

Re: Emergency Mortgage Question


@VALoanMaster wrote:

did the LO tell you what your DTI is?

You might have a lender with some conservative overlays that are making things more difficult than they need to be.


52%

Message 16 of 25
VALoanMaster
Valued Contributor

Re: Emergency Mortgage Question


@Anonymous wrote:

@VALoanMaster wrote:

did the LO tell you what your DTI is?

You might have a lender with some conservative overlays that are making things more difficult than they need to be.


52%


Ok so do you know if the LO was able to get your loan approved with the current scores through an Automated Underwriting System(AUS)?

What I'm trying to do is determine whether or not you have an actual issue or if the problem is with the lender/overlays.

If your file is approved through an AUS with your current scores & DTI, then the issue is with the lender but if your file is not approved through an AUS then you have a problem.

Here's what I mean.

If your file is not getting approved through an AUS then that means the loan has to be manually underwritten. When this happens, lenders/secondary market investors apply additional overlays to the standard guidelines. Here are a couple of examples.

1) I can do FHA & VA loans down to a 580 score a couple of the investors that I sell my loans to require a 620+ score on loans that require a manual underwrite.

2) The investors will cap your DTI to on a manual underwrite even though FHA will go as high as 56.9% with an approval through an AUS. I have some investors that will only allow a 43% max DTI & have some that will go as high as 50% but that's it.

 

Does that make sense?

 

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 17 of 25
Anonymous
Not applicable

Re: Emergency Mortgage Question

This makes sense, yes. Thank you for explaining so clearly. 

I don't *know* but am going to make an uneducated guess and say manually, because in his last communication LO said that UW will need to review paperwork to clear a condition (end of child support).

 

Message 18 of 25
VALoanMaster
Valued Contributor

Re: Emergency Mortgage Question


@Anonymous wrote:

This makes sense, yes. Thank you for explaining so clearly. 

I don't *know* but am going to make an uneducated guess and say manually, because in his last communication LO said that UW will need to review paperwork to clear a condition (end of child support).

 


You're welcome.

I would ask the LO to make sure. An u/w will have to review paperwork either way.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 19 of 25
Anonymous
Not applicable

Re: Emergency Mortgage Question

@VALoanMaster wrote:

@Anonymous wrote:

This makes sense, yes. Thank you for explaining so clearly. 

I don't *know* but am going to make an uneducated guess and say manually, because in his last communication LO said that UW will need to review paperwork to clear a condition (end of child support).

 


You're welcome.

I would ask the LO to make sure. An u/w will have to review paperwork either way.


Go figure, my uneducated guess was incorrect Smiley LOL LO said no to manual UW

Message 20 of 25
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