Posted on: 16th Aug, 2009 07:38 pm
Can I get approved for a mortgage with a middle score of 664 and a 20/51 ratio?
This would be my first mortgage.
I have already applied with someone and he said it wouldnt be a problem, but I keep reading that the 51 is too high.
Thanks
This would be my first mortgage.
I have already applied with someone and he said it wouldnt be a problem, but I keep reading that the 51 is too high.
Thanks
Hi dfjames,
A middle score of 664 is enough for you to qualify for a loan. For FHA loans, you need a score of 620 to qualify, whereas for conventional loans, you need more than 700 points.
The DTI ratio should ideally be 41%. But most lenders are flexible enough to allow you a loan, even though your DTI ratio is on the higher side. However, it is good to bring the ratio to somewhere around 45% to have a better chance of qualifying.
A middle score of 664 is enough for you to qualify for a loan. For FHA loans, you need a score of 620 to qualify, whereas for conventional loans, you need more than 700 points.
The DTI ratio should ideally be 41%. But most lenders are flexible enough to allow you a loan, even though your DTI ratio is on the higher side. However, it is good to bring the ratio to somewhere around 45% to have a better chance of qualifying.
Hi Yes i would agree with jenkin7 as 51 is a bit high but im sure lenders would be willing to work with this. Paying down a little debt would help get you to this 45% area or lower as this will really help you out.
if your loan is being underwritten using automated underwriting (also known as desktop underwriter or DU), many times you'll be able to be approved with a ratio of 51% (and even higher in some cases). other factors, such as reserves on hand, lack of negative credit issues, good down payment, etc. are all taken into account.
untrue - there is definitely a minimum threshold that one must reach in order to obtain a conventional loan, but the credit score mentioned above is sufficiently high as to allow for a conventional loan for this borrower, depending on the ltv. since we don't know the loan to value ratio, it is pretty much impossible to say with certainty that conventional are out of the question.
i'm not liking this new form of "expertise."
i'm not liking this new form of "expertise."