What are my chances???

[Anonymous]

So I just went into underwriting today for a new construction here in Maryland. My LO stated my file looked pretty clean and all the processors asked for were paystubs showing YTD additional income (overtime,premiums, shift differential). I've been under contract since September and the house isn't set to be finished til May hopefully.

Given the numbers I got from the LO my dti would be around 45% hut I do have a few months reserves and my scores are in the 670s. I'm doing FHA. I feel the taxes should be lower considering what I saw the other homes being assessed which would put the property taxes closer to 4000 than 4800 putting my dti in that 43% range. I make roughly 58k gross.

There are some old (3-4 years) judgements that are paid and one collection for 1200 from 13'. Everything else is squared away. So should I essentially take a breath or do I need to worry?

[Lemmus]

...dear god in heaven, the taxes!!! ...every time I think the taxes here are nutzo, along comes someone like you to tell me how good I really have it 

...your numbers look marginally good for FHA but you really should read Shane's sticky on what info to provide to get better answers ...if you have any doubts about the DTIR, now is the time to get answers ...don't bet on the come ...hth

[Anonymous]

Thanks Lemmus.

The house is a townhouse in Baltimore City with a sales price of 208k. Hence the ridiculous taxes but that's Maryland for ya.

I am employed by the fed govt. As I mentioned my assets are roughly 6k between bank and 401k. The PITI payment plus HOA comes out to 1605/month and my current debt is about 518/month which is car loan and two credit cards.

Other than the previous mentioned negatives on my credit the loan and credit cards are 100% in the green.

[Lemmus]

...you say your current assets are 6K? ...that wont cover your fha dp much less your closing costs and fees ...maybe I'm reading that wrong????

[Anonymous]

Well I lucked out in the builder giving 5k toward closing costs and 20k from the city because it's an area they are pumping money into and it's and extra incentive to get people to buy so after my EMD and paying for the appraisal the 25k should handle everything else.

[Lemmus]

...ok, that explains it ...double check that builder contribution toward closing costs ...all too often they include seller paid closing costs and not yours ...your's may be on the up-n-up but its a repeated event in these threads ...good luck!

[StartingOver10]

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@Anonymous wrote:
So I just went into underwriting today for a new construction here in Maryland. My LO stated my file looked pretty clean and all the processors asked for were paystubs showing YTD additional income (overtime,premiums, shift differential). I've been under contract since September and the house isn't set to be finished til May hopefully.

Given the numbers I got from the LO my dti would be around 45% hut I do have a few months reserves and my scores are in the 670s. I'm doing FHA. I feel the taxes should be lower considering what I saw the other homes being assessed which would put the property taxes closer to 4000 than 4800 putting my dti in that 43% range. I make roughly 58k gross.

There are some old (3-4 years) judgements that are paid and one collection for 1200 from 13'. Everything else is squared away. So should I essentially take a breath or do I need to worry?

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What did your LO use to determine that the taxes on this new construction townhome would be $4800? If you have the same TH in the same community wiith taxes at $4k it seems the LO over estimated your tax bill. Ask him to explain to you so you have a clear idea of where the figures are coming from for your real estate taxes.

Lemmus is right about also double checking the $5k contribution from your builder. Read your contract to see which seller costs are actually covered by the seller and which costs are pushed over to the buyer side to be covered by the $5k.  It really does vary from builder to builder and community to community.

[Anonymous]

The LO based the off the sales price of 208k×2.36% which is the rate in Baltimore city 2.24 from city and .012 from state. I was told by the house not being completed and no assessment done he estimated them at the sales price. My thinking is once the assessment is done it will shift in my favor.

I asked about the builder contribution and from the break down its mainly covering the transfer taxes which are close to 4500 in Baltimore.