Financing in Wheeling>Question Details

Erica, Both Buyer and Seller in Wheeling, WV

We cant get a loan for enough money to buy the home that we want!

Asked by Erica, Wheeling, WV Sat Aug 15, 2009

Ok so here is the problem short and sweet. The bank will not approve us for all the money we need because of the debt to income ratio, we have some debt that is deffered for a year so we plan to just pay it off at tax time, but by then the home we want will be gone. Also, my husband get the Post 9/11 GI bill which pays for school and housing allowance. The housing allowance is enough to pay the house payment but they wont accept that b/c they say it is only temporary. Does anyone know of a bank that has more lienent terms and that would allow us to get the home? I know that in the recession they are cracking down. I remember back a few years ago we were making considerably less than we are now and the approved us for over 200,000... We dont have enough equity in our current home to do much with. We were hoping to get a VA loan or an FHA loan. Thanks for your help

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5
Mortgage brokers are the professionals HOWEVER no one is going to lend money home currently above your budget.

SUGGESTION: If you are going to pay off your student loans with tax refund can you borrow that money from a family member pay it off NOW then give them your tax refund.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
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0 votes Thank Flag Link Thu Dec 30, 2010
The underwriter is correct the GI income is temporary. Also, this type of thinking is what get people into trouble. What are you going to do when the money from the GI bill runs out?
Web Reference: http://www.ohfha.com
0 votes Thank Flag Link Thu Dec 30, 2010
FHA loans also allow for a non-occupying co borrower if that is an option for you. Your DTI Ratio can be considerably lower if someone would be willing to cosign with you.
0 votes Thank Flag Link Thu Sep 17, 2009
Wayne is correct - you need to "trim the fat" on the debt load that you show on your credit bureaus...at least enough to get under 55% debt ratio. Once you are below that threshold, you have a shot! Focus on getting as large a loan as you can vs. the purchase price and use any other monies that you would have used for down payment to lower your debt or pay some things off. Consider all the options with your lender of choice and see how their loan programs work. If you are are working with a bank directly, it may be wise to find a local mortgage broker with a good reputation to get a second opinion. Sometimes brokers are able to structure a loan differently to help get an approval where a bank pretends like their hands are tied.
0 votes Thank Flag Link Sat Aug 15, 2009
Erica, if you have debts like school loans that are truly deferred for the next 12 months, then get copies or proof the loans are deferred for 12 more months and those payments don't have to be calculated in debt-to-income ratios. Also, it is correct that FHA/VA typically will not use income that your husband gets for going to school unless it's more than 3 years to continue but even then, scooling income is usually ineligible.

Good Luck
0 votes Thank Flag Link Sat Aug 15, 2009
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