I see that your question is a bit old, but has some recent activity on it!
I'm assuming that you worked this out back in November, but in case not, here is some additional info:
Around the last 3 or 4 months of 2013 Wells Fargo became very conservative in their debt ratios and I closed multiple loans for clients that hey would not for precisely the reason you describe. While 40% is in the high range for a front end ratio, if you are able to get an automated underwriting approval there are many lenders that should be ok with your debt ratios. I have found that once you go over 41% generally the loan becomes non-viable.
If you have a chance, update as to whether you were able to solve this issue! As rates are highjer now, I sincerely hope you completed your financing back then!
Robert L. Hanson
Gladewater National Bank
First Time Homebuyer Specialist
Rate quote or live chat with me at the link below:
Wells Fargo is a great bank to keep your money in... Stable, good balance sheet, etc. They are not a great bank to get your initial loan from and funny they will probably purchase your loan once another lender is able to get you qualified...
You best option is ALWAYS a mortgage broker... There are many options for them to choose from they are in the business of getting you a loan... Not finding a loan that fits their loan guidelines as a Wells, Chase or other Big Bank or Credit Union...
Hope this helps!
It appears you have had some good replies to your question as it relates to how FHA works and I would concur.
I agree, that you should look at other options including going to a mortgage broker. I am not sure if you are a first time home buyer, and if so, there are some great programs that might be of assistance as well through a broker.
I have worked with several programs and am happy to share some possible ideas for you. Feel free to call me.
I would check with a mortgage broker who has more options for you in the purchase of a home. The big banks like Wells Fargo are not the best resource to consider even if you have all of your other accounts there.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
While it is not certain that this is what Wells has done, I wouldn't be surprised if that is the case. It could also be that there are other factors (low credit score, employment history, past derogatory items, etc) that are leading to a denial, it could just be that Wells' requirements are stricter.
You should check with another lender and not give up. I'd be glad to try and help if you want to email me or give me a call.
Tony Grech | Mortgage Loan Originator | NMLS 977416
PMAC Lending Services, Inc.
Toll-free (855) 642-4762 | Fax (248) 945-4842 | Direct (248) 728-0078
Wells Fargo seems to have more overlays. Also, some banks count overtime/bonus money differently. You might want to try a credit union or smaller bank. I have a great recommendation. Feel free to call me if you want a great referral. I just closed a loan with Elevations Credit Union... loved them!
I will agree that your ratios are higher than the norm for an FHA loan, but your best bet is to talk to a lender who is well-qualified and experienced in FHA lending. There may be other loans that work for you and your wife that a mortgage broker would be better able to assist you with than a traditional bank. Give me a call to get a few number of some quality mortgage brokers who have worked well for my clients.