Posted on: 28th Sep, 2009 03:09 pm
My debt to income ratio is high because I own a coop and I want to buy a house and then sell the coop.
So right now two mortgages would make my debt to income ratio 36% if you dont count taxes and PMI/HMI. 53% if you count taxes and maintenance. And 55.5% if you add PMI/HMI.
I am nto sure if I am using the right terminology so lets make up some numbers. Let's say my gross monthly income is $10,000.
Old mortgage + new morgage = $3600
old mortgage + maintenace + new mortgage + monthly taxes = $5300
old mortgage + maintenace + new mortgage + monthly taxes + PMI +HMI = about $5550
So how do the percentages look for an FHA loan? Is mortgage agent going to freak out?
My solution to this problem is to take into account that my girlfriend pays me rent. Which is true, we share expenses. She is not on the old title and I can't put her on the new mortgage because she was recently unemployed. But she still has enough savings to pay me rent for years to come. So WILL the mortgage company allow that to be added to my income and how much should I claim to get to the maximum debt to income ratio allowed?
Any help is truly appreciated!
So right now two mortgages would make my debt to income ratio 36% if you dont count taxes and PMI/HMI. 53% if you count taxes and maintenance. And 55.5% if you add PMI/HMI.
I am nto sure if I am using the right terminology so lets make up some numbers. Let's say my gross monthly income is $10,000.
Old mortgage + new morgage = $3600
old mortgage + maintenace + new mortgage + monthly taxes = $5300
old mortgage + maintenace + new mortgage + monthly taxes + PMI +HMI = about $5550
So how do the percentages look for an FHA loan? Is mortgage agent going to freak out?
My solution to this problem is to take into account that my girlfriend pays me rent. Which is true, we share expenses. She is not on the old title and I can't put her on the new mortgage because she was recently unemployed. But she still has enough savings to pay me rent for years to come. So WILL the mortgage company allow that to be added to my income and how much should I claim to get to the maximum debt to income ratio allowed?
Any help is truly appreciated!
As far as I know, the debt to income ratio for FHA loan is 31/43. If your debt to income ratio is higher than this, then you won't be able to qualify for a FHA loan.
tergirly, what ratio will be accepted by an automated underwriting system is hard to tell at all times, but i think you'll find that 49% is going to be too high.
if you have 800+ credit score, you might be able to squeeze through, but that's highly speculative, truly.
if you have 800+ credit score, you might be able to squeeze through, but that's highly speculative, truly.
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