FHA Automated Approval

[Anonymous]

Yo feel the same even though every thing is submitted and conditions are being looked at by underwriting I'm still very anxious and feel like it's a never ending cycle of conditions

[justrock]

I'm convinced I will get declined for my front end DTI.  I am a full time hourly employee and I am required to work 35 hours a week but I can work 40 hours.  I make a very nice hourly salary (in the 20's) so the extra five hours adds up over the course of a month.  I usually work around 37.50 and i told the loan officer that, she said my ratios look good.  I have little other debt, just a few credit cards, no student loans or car loans.  I guess I should take her word for it that my ratios are ok but it's ALL I THINK ABOUT!!! I've paid for an appraisal, an application and a house inspection to the tune of $1100 and I will probably give up on buying if I don't get this house.

[Anonymous]

JustRock,

How high is your DTI? I mean FHA allows a DTI up to 56.99%, if you are that high, I would probably re-think buying. I came in at 42% total DTI with mortgage and it was fine. I was on pins and needles from the time I applied for the loan until I closed but it all worked out. Listen to your LO and if he/she says it looks good, trust in them. If there are any problems they try to address them as quickly as possible and if you can't get financed through this lender, you can always look for another. DON'T give up.

[justrock]

My front end will be about 31% and my back end 33% (I have almost no other debt).  I read that FHA ratios are 29/41.  Where does 56.99% come from?  I am financing through a local Savings Bank and I've been told that my LO is an expert with first time home buyers.   I'm in contract on a house that's perfect for me, I guess I'm just having the typical case of nerves.

[Anonymous]

56.99% is the max that can be used in extenuating circumstances. You definately don't want to be at 56.99% in my opinion, that doesn't leave much of a comfort zone.

[StartingOver10]

56.99% is the max back end ratio (total debt) that FHA allows.  But an individual lender can set their max backend ratio lower.

45.99% is the max front end ratio (housing ratio) that FHA allows. But an individual lender can set their max front end ratio lower.

[Anonymous]

Believe me I was the King of Nerves when I was going through it, I kept waiting for the ax to fall and find out I couldn't get my house. As long as you are good initially and didn't misrepresent yourself during the application and the house is all good, you should be fine. Just remember no shopping sprees until the loan closes and no new lines of credit, lol. That is the thing that kills a lot of mortgages new lines of credit or increasing your DTI due to a shopping spree to furnish your new home. Really I didn't want to believe my LO when he kept telling me the deal was going to go through, I fought him every step of the way thinking of things that could happen but in the end I closed one day out from our original close date because of some repairs that needed to be completed per FHA inspector. We got the inspection on 7/29 and all repairs were completed by 8/6, reinspection on 8/8 and closed on 8/13. Both the sellers and I were very motivated to close as quickly as possible. So don't give up no matter what happens, unless of course the house is found to be really bad or the seller won't make or help make any necessary repairs for FHA.

Good luck, keep us posted.

[Anonymous]

My loan officer told me all of my conditions have been cleared. But the aprasier needed to write a loe explaining a correction in the appraisal. My lo told me it would only take a day or two to hear from underwriting with the ctc. The lo resubmitted the file to uw yesterday. What steps are after the uw?

[Anonymous]

Our closing date is the 29th of this month

[justrock]

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@Anonymous wrote:
Our closing date is the 29th of this month

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Congratulations.  Enjoy  your new home.