High DTI Lenders - FL

[swflben]

Are there any high DTI lenders in FL? With rents rising, it is cheaper to buy & I'm kicking tires on purchasing. However running into issues with any lender going over 50% DTI after mortgage + all other debts.

All 3 bureaus are between 700-710. Sitting at about 38-40% DTI right now before PITI on a $90k W2 salary. To get anything other than a shoebox in FL would need at least $250k+ mortgage. Can do 3-5% down.

looking for advice or connections.

[Mortgage-Specialist]

Are you considering FHA or Conventional? With FHA, you can go up to 56.99% debt ratio. This is very common practice for us. Most lenders have overlays thst bring the debt ratio down to 50% or 43%. Conventional caps you at 50%. So if you need more house, you'll want to go FHA to maximize your DTI to 56.99%

[VALoanMaster]

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@swflben wrote:

Are there any high DTI lenders in FL? With rents rising, it is cheaper to buy & I'm kicking tires on purchasing. However running into issues with any lender going over 50% DTI after mortgage + all other debts.

All 3 bureaus are between 700-710. Sitting at about 38-40% DTI right now before PITI on a $90k W2 salary. To get anything other than a shoebox in FL would need at least $250k+ mortgage. Can do 3-5% down.

looking for advice or connections.

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Hi @swflben,

How are you calculating your debt ratio?

I'm pretty sure Freddie Mac will allow DTIs over 50% if you get an AUS approval. The only other option would be to go FHA which will allow up to 56.9% with AUS approval.

[CreditFun]

A no ratio program exists, where no income is required on the loan application. However, it requires 25%+ down.  This program allows gifts for downpayment and reserves.

Other considerations for conventional and government loans.  Add a non-occupying co-borrower.  Revisit proposed insurance coverages to lower your PITI. Refinance/Pay down debt. Etc.

There are also 100% financing programs out there.  With loan limits going up January 1st, you could pay down some debt with your downpayment money and that might be a game changer for you.

[jmw1]

Did you miscalculate your DTI?  I hope so. 38% DTI without counting any housing payment is $2800 in monthly minimum payments which IMHO would be soul crushing and on the brink of catastrophe on $90k annual income.