Posted on: 24th Apr, 2010 03:12 pm
I have started the process of getting a loan in Oregon and have been turned down due to a Front End Ration of 31% even though I have no other debt. Also my credit scrore is good (723) and I have 10% down. Is this going to be possible or is it going to be a bad idea and a waste of time to pursue.
As far as I know, for conventional loans, the debt to income ratio is 28/36 and for FHA loan the limit is 31/43. You won't be able to qualify for a conventional loan with a front end ratio of 31. However, I would suggest you to contact FHA lenders and check out if you can get a mortgage.
When a lender declines a loan, they must give you in writing the reasons for the decline. What were the reasons for the decline??
We can not tell if declined for something about you ar something about the property.
Maybe you applied at a lender who will not do a debt ratio over 28%. I know of such portfolio lenders. We can not advise to just apply elsewhere unless we know the decline reasons..
We can not tell if declined for something about you ar something about the property.
Maybe you applied at a lender who will not do a debt ratio over 28%. I know of such portfolio lenders. We can not advise to just apply elsewhere unless we know the decline reasons..
Hi Snipe,
It's unusual that you were denied based on just the front end ratio because you have zero other debt which means more of your income can go towards your housing expense. It's possible that you were declined because of a lender specific overlaying guideline. You should get another opinion.
Good Luck!
It's unusual that you were denied based on just the front end ratio because you have zero other debt which means more of your income can go towards your housing expense. It's possible that you were declined because of a lender specific overlaying guideline. You should get another opinion.
Good Luck!
No other reason. They aproved me at a lesser loan amount and clearly stated that it was based only on front end ratio even though I was well below back end ratio. I guess I'll have to start shopping around a bit.
Shop around. It appears you applied someplace that has their own guidelines which are stricter than others.
You should be ok many places up to a debt ratio of 41%
You should be ok many places up to a debt ratio of 41%