Mortgage/construction

[dborun200]

Hello, is having a land loan and a personal loan from sofi bad if I'll be trying for construction loan?

land loan 1200mo

sofi 560mo

fico ex 701

mo income before taxes 8k

[ShanetheMortgageMan]

Just having the land loan and personal loan isn't a bad thing.  The land loan will be paid off with the construction loan, so it's payment will be eliminated from your DTI ratio.  If the SOFI loan won't be paid off then it's $560/mo payment will be included in your DTI ratio.  Whether that payment will hinder your ability to qualify for a mortgage will depend on how much you are trying to qualify for, along with the expected property taxes & homeowner's insurance on the home you're getting a construction loan for.

[dborun200]

Will they look at the total amount with sofi loan or just monthly payment? Also I read sofi might be a cfa account?

[ShanetheMortgageMan]

The payment amount is what is considered.  If it'll be paid off within 10 months (for example if the balance is $5,600 and the payment amount is $560/mo) then some lenders will exclude that from the DTI ratio.   It possibly being a CFA shouldn't have any impact.

[dborun200]

Ok thanks. Just trying to get any info for construction loan to be ready when I go. Last time I tried one bank said was high at the time at 45 and was supposed to be at 43 then another said I was high at 38 at that time and said no 🤦🏻‍♂️