Will VA accept a 44% total DTI?

[eva322]

This would be with the new projected home loan as well...anybody know or had an approval on a 44% of DTI?  Our scores are at 651 (HIS) and 700 (MINE) and our DTI without the projected home loan is at 31%...the only bad is that I had a bankruptsy on my record that was discharged in 2011.  They have my paper work on the final discharge and I've had 2 vehicles and 1 credit card in my name since then, all paid 2 wks before due date...that's 2 years of great credit reporting.  Well, I pay all the bills so all of our bills are usually 2 wks before the due date.  My husband would be first on the loan being that he's the veteran.  What do you all think??  We are currently in underwriting now.  The title was ordered and we have signed the GFE.  We are just waiting on our conditional approval or approval alone....it's like time is standing still....

[SemperGumby]

It sounds like you are on your way.  I am pretty sure 44% total DTI will be accepted with VA.  I would hope that the loan officer wouldn't have you this far in the process knowing your DTI and if it were too high.

[tooleman694]

It really depends on your income, from what I understand a VA loan can go up to 50 percent backend if have a good income.

[SeaDog1957]

You can have a DTI that high if you have sufficient "Residual Income". Google VA residual income and you will find alot of information. It is basically the amount of money you would have left after monthly obligations compared to an amount of money that they estimate you need for living expenses. There is a table that breaks down how much you need per month based on region of the country and family size.

http://themortgagereports.com/11170/va-mortgage-residual-income-guidelines-for-all-50-states

[eva322]

I'm liking everyone's answers!!  Everything looks pretty positive...here's our figures...

Total monthly income:  $6,084.00

We are a family of 5 in GA so the limit per month would be:  $1,039.00 

Monthly revolving debt with new projected mortgage:  $2,767.43

Estimated Residual income:  $3,316.57

I'd say even with a 44% (being only 3 % over the VA DTI limit) we're still in the clear thanks to our residual income per month...wouldn't you all agree???

[SeaDog1957]

You are probably good...but if you have Microsoft Excel. This is a pretty good file to use.

www.benefits.va.gov/roanoke/rlc/formsrlc/prequal-04.xls‎ (paste into browser to download or google prequal04).

You will have find a better payment factor as the file doesn't go down to the current low interest rates...but 4.63 is the number for 3.75% 30 year fixed.

http://www.harpfinancial.com/AmortizationChart.htm

You need to include monthly taxes and maintenance (its on the sheet). The 14 cents per suare foot is still a good number for the maintenance as far as I know.