Posted on: 19th May, 2010 06:34 am
How strong of a credit profile do you have to have in order to qualify for up to 50% DTI?
Especially if there is no credit card debt, but a personal loan that would be paid off in less than 24 month, an auto loan in less than 4, and student loans? I have a high DTI because of student loans and my auto payment.
I'm interested in purchasing a condo sometime next year and I won't apply until my credit card debt is paid off, but at the loan amount I'm interested in would put my at the DTI mark around 50%. I make 46K year (with a possibility of a promotion, which means a pay increase - but I won't count my eggs before they hatch), have a credit score of 740, never paid a bill late in my life and I'm sure my credit score would increase as the credit cards are paid off.
The range I'm looking at is 135-155K and I would put 10% down.
Thanks for the input!
Especially if there is no credit card debt, but a personal loan that would be paid off in less than 24 month, an auto loan in less than 4, and student loans? I have a high DTI because of student loans and my auto payment.
I'm interested in purchasing a condo sometime next year and I won't apply until my credit card debt is paid off, but at the loan amount I'm interested in would put my at the DTI mark around 50%. I make 46K year (with a possibility of a promotion, which means a pay increase - but I won't count my eggs before they hatch), have a credit score of 740, never paid a bill late in my life and I'm sure my credit score would increase as the credit cards are paid off.
The range I'm looking at is 135-155K and I would put 10% down.
Thanks for the input!
No one can tell you it is ok. We can tell you it is possible.
The only way it is possible is to run the scenario on the automated underwriting systems for Fannie Mae (DU) and Freddie Mac (LP). Human beings can not approve the DTI up to 50%.
You are talking about a year from now. While some lender could run the scenario for you now, no one knows what the maximum DTI will be a year from now.
Actually, I take it all back. If you are putting less than a 20% down payment. That means you need Private Mortgage Insurance (PMI). None of the five major PMI companies presently provide PMI for debt ratios over 45% and that is only one of the five, the others cap out at 41% right now. No telling what they do a year from now.
You could maybe do FHA if the condo is FHA approved. The condo needs to be FHA approved and you still need to have the scenario run through automted underwriting for a DTI to 50%.
The only way it is possible is to run the scenario on the automated underwriting systems for Fannie Mae (DU) and Freddie Mac (LP). Human beings can not approve the DTI up to 50%.
You are talking about a year from now. While some lender could run the scenario for you now, no one knows what the maximum DTI will be a year from now.
Actually, I take it all back. If you are putting less than a 20% down payment. That means you need Private Mortgage Insurance (PMI). None of the five major PMI companies presently provide PMI for debt ratios over 45% and that is only one of the five, the others cap out at 41% right now. No telling what they do a year from now.
You could maybe do FHA if the condo is FHA approved. The condo needs to be FHA approved and you still need to have the scenario run through automted underwriting for a DTI to 50%.