Fha loan

[JLAW723]

I applied through my credit union and was denied due to 50 percent dti. My current monthly income is 3302.00 .. Car payment is 400 and I have 6 credit cards reporting balances with monthly payments of 25. Low balances on three of the cards which I could pay off (100-150) and two I could balance transfer to another card so at most I'd have car payment and two card payments being 25 and 20 per month. My current fico scores are equifax 696 transition 720 and experian 697 ... Credit union said mid score was 684. There's another place I'm checking and she said she can get approvals with up to 50 dti for fha.. Do I have a chance? Should I balance transfer the other two cards? 500 for one and 740 for the other. I'd like to be approved before July 1st. Loan amount I need is 134800 for house and can get a gift from relative up to 10,000

[Anonymous]

My opinion. Don't balance transfer, the debt being moved does nothing. Pay them off, them apply.

Good luck

[JLAW723]

I figured it would remove the 25 dollar minimum payment?

[JLAW723]

And would at that point lower the dti

[Anonymous]

The amount you owe will still technically be the same though.

[frugalQ]

definitely pay off the low balance cards...if they are $25 minimum payment, that's $75 positive swing to your DTI.   as far as the other two...are you sure that the minimum balance will not increase because the balance increases?  from a pure DTI perspective, it may be counterproductive to BT.  

are you paying interest on those two balances that you are looking to transfer?  if so, you should try and get a BT offer from your existing cards and use that.....from a pure financial decision, it's a better option.

but definitely pay off those low balances.  have you ran your DTI calculations to see where you will be if you just paid off the low balance cards?