Kenyetta Tay…, Home Buyer in Washington, DC

General loan question

Asked by Kenyetta Taylor, Washington, DC Sun Aug 25, 2013

Do you think that 9200 is too much of a down payment for a first time homebuyer. I have an FHA loan which only requires a 3.5 % downpayment however by debt to credit ratio is a little high due to cars and other payments, credit cards, loans etc..
I do have help with bills and such but I'm unable to add my fiance's name to the loan. I will also be doubling my payments from my rental to the mortgage. I had the 3.5 % but now the underwriter is asking for 5%. Need help

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Answers

4
Hello Kenyetta,

Debt-to-income ratios can go as high as 50% or more with extenuating circumstances: such as but not limited to: Excellent cash reserves, excellent credit, stable income or additional down payment. The ratio between your current monthly expenses and your proposed monthly expenses are also taken Iinto consideration when exceding a 45% debt-to-income ratio. A full review of your loan application would be needed in order to determine if you are eligible to exceed ratios allowed by the Fannie Mae or Freddie Mac automated approval system.

I would be happy to review your loan scenario to determine if there is a better loan program for you. Call me! 202 573-6035.

Catherine Purcell
Senior Mortgage Loan Officer
Fairway Independent Mortgage Corporation
Catherinep@fairwaymc.com
0 votes Thank Flag Link Mon Aug 26, 2013
Kenyetta,

Why is your lender asking for 5% down payment from the FHA standard of 3.5%?? if you are cash strapped to buy this home a "option would be a lender credit to help with closing costs or obtain a "Gift" to raise the new 5% down payment.

Greg Myers
RE/MAX Realty Gropu
0 votes Thank Flag Link Sun Aug 25, 2013
Hi I believe my debt to income is at 49%. I just keep getting different prices for the same loan for the downpayment. It's a FHA loan. I had 2 different loan officers, same price for the home just different prices for the downpayment. I'm just frustrated..
0 votes Thank Flag Link Sun Aug 25, 2013
Hi Kenyetta,

Are you moving to a conventional loan or has your DTI increased passed the threshold? If you are comfortable with the $9200 payment and love your potential new home, go for it. Ideally, you want to be no more than 50% of your take home combined income to go to home, bills, cars, etc but that is difficult to ask in this economy.

Budget wisely because you should have some emergency cash for home repairs and everyday occurrence

Good luck
0 votes Thank Flag Link Sun Aug 25, 2013
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