You of course, need to talk with a lender, to obtain your pre-approval letter to submit with your offer. One of my "go-to" lenders is Jin Hee, with Prospect Mortgage (213-300-0618)...she will welcome your call and be happy to answer any questions.
And, by the way...where is your sharp-shooter Buyer's Agent? Don't tell me that you're being represented by the same agent that is representing the Seller...?! Don't do that. Work your buying strategy out with your OWN representation, a Buyer's Agent that reps only your interests. Not the seller's agent, who will tell the seller every word that you say about your situation...as they are contractually bound to do.
Call me if you want to ask any further questions. And best of luck buying your first home!
Keller Williams Los Angeles
Structure: 5% gift + 95% mortgage; if you have good credit (720+ scores),
this would probably allow you to buy more house (higher purchase price) - because
the MI (mortgage insurance) would be significantly lower on the convention loan.
- Al Rodenburg, Sr. Mortgage Loan Officer/CMPS certified/NMLS# 272775
firstname.lastname@example.org (281) 236-5743
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Once again, thanks for the input. I'll have a better idea next week of where we're at regarding getting the loan funded. The file was submitted to Nations Direct Mortgage who is suppose to be good with fha loans with a quick turn around. Now this may all be "broker speak" but only time will tell. If this lender falls through I'll be seeking the assistance of another broker with another newtork of lenders. I'll keep you in mind if this lender falls through. Thanks.
FHA does allow higher DTI with compensating factors. I don 't know if you will be approved or not without seeing your application but I can tell you that seeing a DTI in the high 50's is not uncommon with FHA.
Agents that tell you to speak to a real estate agent to get a mortgage opinion are doing you a disservice, especially ones that don't even know that gross income is used instead of net.
Note that most NMLS licensed loan officers in California that actually know what they are doing also have a real estate license anyway so it only makes sense to ask the people who understand the entire transaction.
If you have a good lender you are working with now, they should be able to get it done fro you.
I did submit my file to a broker who ran it through an automated underwriting system and it was approved (for a conventional loan). Once the underwriter began verifying the supporting documents (W2's, pay stubs, etc) it was determined my dti was too high for their comfort level which prompted myself and my broker to submit my fille to an fha lender. He says I shouldn't have a problem getting fha approved with compensating factors such as credit (middle score 734, high reserves, and job history) but I was told this before. Approved via the automated system only to be denied once manual underwriting enused. My feedback has been a mixed bag, looking for something more concrete. Perhaps a lender that works with higher DTI's.
I would recommend you to talk your real estate agent to get a second professional mortgage opinion because there are many loan agents that promise and don't deliver. This happens frequently. The numbers don't lie and it has to make sense to the lender.
Best of luck!
Thanks, I appreciate your input and your offer for assisting me. If the current lender/mortgage broker I am working with now is unable to approve the loan I will definitely drop you a line. If you say it can be done I believe you. We'll see what happens.
Based on the information you have given you will most likely be approved.
It is in fact your GROSS income that is used for DTI and not your NET income.
If you have any problem getting approved, give me a call and I'd be happy to assist you.
Lender uses net income to qualify. And by the way you don't need to exhaust all your down payment; 3.5% will do it unless you would put like 20% down.
Yes it is a condo (townhome). I tried the conventional route and didn't get past underwriting due to high dti. With an fha loan dti are generally a little higher compared to that of conventional loans. I figured with compensating factors such as credit and down payment with the conventional loan I'd be okay. Fha allows me to keep more money in my pocket for reserves and as previously mentioned allows a higher dti ratio.
You're missing some items:
1) What's your monthly NET income?
2) What has been your yearly net income?
3) Do you own any other real estate property or liability?
4) Any recent foreclosures?
5) Do you have an agent to represent you in this purchase?
I could help you and refer you with a reliable and experienced fha loan agent.