Possible, depending on other factors. Meet with a local full service lender and discuss your plans and goals. DTI is a problem which can often be overcome by a careful examination and some planning.
Your score is fine and you nearly have 20% down.
Some options, assuming what you wrote is accurate, put down less and pay off debts, use a different loan to achieve acceptable DTI, find additional income you are not currently crediting yourself.
Here's the next question, assuming your information is correct are you sure you want to put yourself in this level of risk? The reasons banks have DTI ratio's is to ensure the borrower can afford the purchase. If you are on the edge financially and you get sick, lose your job or have a financial emergency you could be in trouble very quickly.
Take a good look at your options, discuss them with a lender and consider carefully how you want to move forward. Best of luck.
I am not sure who mentioned that you went to Wells Fargo, but they will only go to 45% DTI, even though they are a Freddie Mac lender, and Freddie is the only one that will go to 50%. However, that being said, all lenders can put their own overlays on the guidelines, and can restrict you to 45. There is talk of new guidelines reducing DTI to 43, so people have to watch out for these things. I know everyone wants to pile on as many deductions as possible to reduce their taxable income, but this is the thing that comes back to haunt you when you are applying for a loan.
8700 Reseda Blvd., Suite 213-B
Northridge, California 91324
(818) 967-9626 mobile
(818) 979-0226 fax
Great job preparing and getting a good deal on the house. Lenders will use the lower of the appraised price or purchase price to determine loan to value, so while it helps, it won't be formally recognized.
Your income is very good, but my experience getting the higher DTI was usually for borrowers quite a bit more than that. I think at this stage of the game, you've likely done all you can and need to wait until they decide. Each underwriter has their own idea of what makes something acceptable under the guidelines and where they might make an exception. I'd say some prayers and find something fun to do and get your mind off of it for a while.
I would love to tell you yes, but I have no way of knowing. What I can tell you is that DTI is often based on information that can be updated. Have you paid off or added any recent debt? If paid off, get the proof to your lender immediately. Are the payments the lender is using based on your credit report? These are often estimates and can be way off. Review your actual statements from any credit cards and see how they align with the credit report. If the credit report is using a 5% default and the actual minimum payment is less, your actual payment should be used, even if you make higher ones.
I've seen DTI's up to 51% approved, but this is typically higher income people. The necessities such as food, lights and gas which are not calculated into DTI are a lower portion of income as income goes up.
Help with Any Real Estate Transaction - Buy or Sell Â
Call me 424-777-9377 - Â FREE CONSULTATION! Â
Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855) Â ext. 777.Â
President - RealtorÂ®Â
- Trust Sale Realty -Â
Residential & Commercial Real EstateÂ
Toll Free: 1-855-TRUST-55Â
Toll Free: 1-855-878-7855Â
Fax: 310-356-4925 http://www.TrustSale.com Â http://www.TrustSaleRealty.comÂ
- We Hire CA Licensed Real Estate Agents -Â