Licensed Loan Originator
Amerifirst Financial, Inc.
1910 S. Stapley Drive #209
Mesa, AZ 85204
NMLS# 213777 AZ LO-0915068
Apply Online: http://www.facebook.com/TheArizonaMortgageExpert?v=app_49497
Regarding the project itself, yes you need the project to be FHA approved.
FHA DTI limits will change from lender to lender. As a rule, FHA's DTI is 31/43, the 43% being the combination of your mortgage and other credit reporting debt applied against your income. However, again, each lender's limit will vary. For us, with appropriate compensating factors (i.e. credit score, time a job, increased earning potential of profession, credit history, cash reserves after closing costs), you can go as high 55%.
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
The majority of loan that are done today are not manually underwritten, but are run through one of the desktop underwriting systems, which will come up with a result such as approve/elligible, or Accept. Sometimes subtle differences in information will make a difference on what is accepted and what is not. There are a handful of lenders who still use the 41% back end. Fannie Mae will go up to 45% back end, Freddie Mac will go up to 50%, and FHA will go higher, although most lenders will cap at 55%. There is a possibility with your amount of exisiting debt, the system won't approve you, but no one would know until they run your information through. By the way, it is debt-to-income ratio they look at. Things that could make a difference are the percentage down, is it 3.5% or 5%, or more. Do you have reserves? Are you planning to use a seller's concession? Don't forget that if you deduct unreimbursed business expenses on your taxes, this will be deducted from your income to qualify you. Also, if you are relying on overtime or bonus income, can it all be used? Is it declining? Have you received it for at least 2 years?
The best thing for you to do is to contact a loan officer and have them guide you in what to do.
You need to speak with a lender who routinely does these loans. Also, if you're planning on buying a condo you should check if the project is FHA approved or not. Most of the newer projects will be, but spot approval is a thing of the past and it could take time before you know if it will be approved. Owners in buildings like this are less inclined to accept FHA financed offers because of this. Talk with your agent/broker for more info and lender referrals.
Lance King/Owner-Managing Broker
P.S.> You can have the greatest Loan Officer in the world, but if their company doesn't offer many different loan programs than you may have to make a change to get what you want.
Itâ€™s important to note that the automated software requires documentation to verify the data input by the originating lender. When you go through the pre-approval process I would highly encourage you to ask your lender to review your documentation (i.e. paystubs, bank statements) to make sure the data will be able to be sufficiently verified for the program you choose.
Ryan Ole Hass | MBA
The Red Door Group L.A.
Keller Williams Realty Larchmont
DRE Lic# 01417826