Financing in Pittsfield>Question Details

Huny409, Home Owner in West Springfield, MA

How strong of a credit profile do you have to have in order to qualify for up to 50% DTI?

Asked by Huny409, West Springfield, MA Sun May 16, 2010

Especially if there is no credit card debt, but a personal loan that would be paid off in less than 24 month, an auto loan in less than 4, and student loans?

I'm interested in purchasing a condo sometime next year and I won't apply until my credit card debt is paid off, but at the loan amount I'm interested in would put my at the DTI mark. I make 46K year, have a credit score of 720, never paid a bill late in my life and I'm sure my credit score would increase as the credit cards are paid off.

The range I'm looking at is 135-155K and I would put 10% down.

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Answers

4
Thanks for the advice everyone.

My personal loan is through a credit union - the same credit union where I would apply first for a mortgage.

I got a raise this year and will make $47K, but for the past couple of years I made $46K, so I just used that has an average. There's also a possibility for a promotion, which could raise my salary to $50K+, but of course, I will count my eggs before they hatch ;p
0 votes Thank Flag Link Mon May 17, 2010
Hello- The best rates and loans are for borrowers with credit scores over 740, so hopefully you will get there.
For your credit cards, its alright to pay them down and off, but don't close out the CC accounts officially. Leave them open.
Is the personal loan with a bank, or with a person?
Also- maybe you will get a raise or a bonus by next year, and you'll be making a little more which will help your DTI %.
If you need any further help with anything, let me know. (I'm also a loan officer.) Thanks,
Ken L.
0 votes Thank Flag Link Mon May 17, 2010
Fannie Mae will no longer approve loans with debt ratios exceeding 45%, except with very strong assets and very high credit scores.

Even though Fannie Mae may accept loans where the DTI ratio is 50%, most lenders will max it at 45%.
0 votes Thank Flag Link Sun May 16, 2010
Hello, Huny!

I would suggest that you contact a mortgage originator as that.is their area of expertise.

I work in the Berkshires so if you would like me to recommend one feel free to contact me at elizabeth@elizabethherbert.com
0 votes Thank Flag Link Sun May 16, 2010
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