UDSA Wisconsin Question

[Anonymous]

One other question at the moment...is it true if you have an installment loan with 6 or less payments left that it isn't counted against your DTI?

[ShanetheMortgageMan]

Directly from an underwriter - For a Rural loan,they only allow debts to be excluded if there are less than 6 payments, not 10.

[WannaHouse]

I am in WI as well. We are pre-approved for both USDA and FHA. I also wanted to let you know that WI does have some county and city programs that might be able to help with down payments and/or closing costs if you qualify.

Here is the link for the Dane County program:

http://www.dcha.net/homebuyer-assistance-program.php

I think for most counties, you can just search for down payment assistance in ----- county.

Hope that helps and good luck!

[Anonymous]

We are in WI too.  Just got more information on the USDA loan this week.  We went to the bank on Monday and were told that our student loans are included, but since there is no payment listed, they calculated their own at 8% over 10 years-which made the payments very high.  We went from a 10% DTI to 46%.  We decided to wait.  My scores average the 660 needed, but my husbands avg is 615.  So we will work on getting those scores up and keep moving forward.  Our discharge date is 9/06 so even without the 660, we should be good to go this Sept.  Just keep trying to keep proessing along. 

[ShanetheMortgageMan]

2Ds2Cs, you might want to inquire with your student loan lender to give you an estimated payment based on today's interest rates and see if the lender will use that instead of the 8% over 10 year payment.

[Anonymous]

Thanks for the the advice Shane.  We will have to look into that.  One payment was calculated at $487, but the true payment is $256 (we know that because it is my husband's undergraduate loans which we have been paying on for quite some time).  Just reducing that would put our DTI to 40%.  Problem is my scores are 660, husbands are 620 so I am not sure if we could get the loan either way.

[ShanetheMortgageMan]

So you are paying the $256 now but it doesn't actually report a payment?  Then providing a statement showing the $256 amount due would be all that is needed.

[Anonymous]

We were making that payment, but hubby just started school in Jan for his masters so it is deferred. 

[Anonymous]

Thanks for the information Wisconsin folks...although the information on the student loans doesn't look like it bodes well for us...will just keep paying stuff down and talk to a broker in a few months see what chance there is...River Home Lending seems to be popular in this area.

[ShanetheMortgageMan]

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@Anonymous wrote:
We were making that payment, but hubby just started school in Jan for his masters so it is deferred. 

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Do you have a statement from when the payment was due?  Has the balance changed (increased) since then?