Help me with DTI, my loan might not get approved...

[Anonymous]

So this has been the loan from hell.  I got my pre-approval and found the house of my dreams.  Unfortunately since my wife's scores are too low we had to qualify under me alone, but things were looking good and our offer for a new home got accepted.  My loan guy told me I was good so I paid for some upgrades that are non-refundable.  Of course I have a nightmare of a time getting TU to remove some disputes, but finally get it done.  Then my HR department refuses to say my guaranteed overtime is "guaranteed" so I go through hell for a week and call up my Labor Union before they finally give in.  Then just as I think everything is finally going to work out my LO tell me now since he calculated my taxes for 2.5% and they're actually 3.3% that I might not get the loan unless I can qualify for some first time homebuyers program that will give me some more room on my DTI. 

I've given my notice, made arrangements to move, bought a new fridge, paid for upgrades and have family coming, this is horrible.  I was originally supposed to close on the 16th now I have no clue and it might not even happen.  Anyone have any ideas how I can get my DTI down if I don't get in this program?  I was thinking about having a friend or relative take over my car payments, my best friend says he will do this for me.  Will this affect my credit at all and how long will it take for the car payment to be removed from my DTI?

[seemund]

What is you currently DTI?

What is your car payment? What about credit card payments? (trying to figure out what's hurting your DTI)

Do you live in a community state? (Your wife's bills get added to the calculation)

If you really think it's worth it, you could transfer/refinance the car under your wife's name, as long as you don't live in a community state (otherwise it won't matter).

It's up to you to decide if paying more (car/apr) is worth the house or not. 

[Anonymous]

I live in a community state, I already asked the LO about that. My best friend will do it for me though. I don't know my DTI but I have a bunch of student loans and medical bills along with the car payment.

[seemund]

How much is the car payment for? You could do it with a friend you trust, but I don't think you could get it done in less than 2-4 weeks.

If you could do something to reduce your monthly payment on the Medical Bills/Student Loans would help too...

[Anonymous]

I totally feel your pain. We went through the DTI three weeks ago and at the end, had to pay off a loan with a large balance. I received a gift fund from my mom to pay it off. The DTI was a total killer for us at the beginning because we live here in California and it's also a community property state. We both have student loans and luckily they did not include that in because it is deferred for more than 12 months. You can probably pay some debt down or if you do have your friend take over the car payment, I don't think it is going to reflect on the credit report right away. So I would suggest asking your LO what would they need to show that you have transfered the car over to your friend? Such as probably sending a new contract or some type of other proof they you are no longer responsible for this debt so they do not include it in your DTI. That was what we did for our loan that we had to pay off because it did not reflect on our credit report right away. We had to send in a bank statement showing it was paid along with a paid in full letter from the creditor.

[Anonymous]

Thanks Cali girl!  The only problem I found out is that my friend has to go in person to do this   At least that's what they said to me on the phone.  He's applying for the loan tomorrow.  I wanted to just give them $4k and refinance it, but they wouldn't allow me.

[Booner72]

Once your car loan is paid off by your friend's loan, then you can submit to your LO and hope that the UW takes the payoff, thereby reducing that car payment from your DTI.  (I seriously don't think they are going to go by what your credit report says or doesn't say with this proof).

HOWEVER, you need to find out what your current DTI is and what your DTI would be without the car payment.  God forbid that doesn't do it and your friend does all that for nothing. 

GOOD LUCK!!

[Anonymous]

Yes, my LO said it would be more than enough to do the trick.

[Anonymous]

Did you say you have $4k extra? Would applying that towards the down payment do it?

[Anonymous]

My LO didn't say I'd putting 4k down would help but I'm guessing not. He said I should try to put it towards my student loans or car payment to reduce them but I refinanced my car 8 months ago Sao they wouldn't let me refinance again.