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Max loan potential estimate w/ USDA loan?

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Regular Contributor

Max loan potential estimate w/ USDA loan?

My wife & I meet the minimum income threshold combined.

Our joint DTI is 26%

I'm trying to weigh the pros and cons of her applying for it on her own.

Ohio isnt a community property state, so my debt wouldn't be calculated in determining her DTI.

With a gross income of 41k, DTI of 38%, which I could possibly get to 36% and a credit score in the possible 800s what can we expect off of her income alone?

Thoughts guys? I really appreciate it, thanks
2 REPLIES 2
Established Contributor

Re: Max loan potential estimate w/ USDA loan?

Hello Matt,

 

Regarding the pro's and con's about buying with a spouse. I have my own personal opinion on this. Being an old man with 30 plus years in the mortgage business, I have seen my share of downturns, recessions, high inflation, high interests, and utter implosions. I always tell people this. Unless you need the other spouse in order to qualify, I tell them the best way to recession proof yourself and to create that safe harbour, try to buy the home in one of the spouse's name. You can always deed the other spouse on title and take them off if the going gets rough. This way if something cataclysmic happens where you end up losing your home, the other spouse can come in and save the day and is unscathed so they can go on to purchase another home in their name. Just my opinion.

 

When my wife and I bought our first home together, we did her loan under the USDA in her name only for that very reason. In closing, I always run the GUS upfront on these USDA's. Over the years that have tighten up substantially regarding ratios and acceptable credit scores. This way I don't have any issues down the line at closing time. Make sure whatever lender you choose to work with runs the GUS upfront. Better to cross your T's and dot your I's in the beginning then be forced into switching loan programs in the 11th hour. Just my thoughts.

 

Best wishes to you!

Mortgage Banker - Since 1988 offering FHA, VA, USDA, Conventional, Jumbo and Portfolio Loan Products. Licensed in AL, AZ, CA, FL, GA, IL, IA, IN, KY, LA, MI, MO, NC, NE, NV, NJ, OH, OK, OR, PA, SC, TN, TX, VA and WI.
Message 2 of 3
Regular Contributor

Re: Max loan potential estimate w/ USDA loan?

Incredible advice, thank you so much for it.

Very very very reassuring to hear a professional share advice I was wanting to take. That gives methe confidence to move forward.

I want to absorb the CC debt entirely and solely, taking on the high risk and no equity debt and leave the auto loan and mortgage in her name.

She works for the government and gets her student loans written off in 6 yrs, so I'll leave that alone.

A few student loans finish in less than that, we'll pay them off.

After I get home I'll gather numbers and make sure this is really possible for her as a individual versus a couple

Thanks again!
Message 3 of 3
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