Posted on: 13th Jan, 2009 11:15 am
I have an investment property that I now have 20% equity in. I have a 1st & 2nd that I want to combine. I know most lenders want a dti of 45%, and I would be at about 49%. Do I stand a chance of getting a loan? Credit score is well above 720. I just want to know if it is even worth applying. Help!
it is worth checking out for free if it is a 1 or 2 family. if the second mortgage was acquired at purchase, it would be treated as a rate and term refinance. if after purchase, it is a cash out refinance. for 1 and 2 family you can get to 80% of value. for 3 and 4 family you are limited to 75% and 70% of value for rate and term or cash out refinances. these are agency loans. with dti that high, usually not worth looking into portfolio loans.
mortgages are automated. with high credit score and lots of reserves there is no telling what the automted underwriter would approve. a dti of 49% is not impossible. do not spend any money trying to find out. someone can ru the underwriting engine for free.
mortgages are automated. with high credit score and lots of reserves there is no telling what the automted underwriter would approve. a dti of 49% is not impossible. do not spend any money trying to find out. someone can ru the underwriting engine for free.