For conventional loans you need 620 FICO then your total debt with house payment (DTI) compared to your average gross income over the past 2 years** needs to be under 45% and maybe lower to qualify. Thatâ€™s 45% DTI. Calculating income correctly needs to be done by your loan officer though, that was just a general rule of thumb and only applies a small percent of time. For FHA loans if you have 500-579 FICO you need 10% down and a lot of other supporting documentation as why you deserve a loan amongst many other details. Max DTI would be 41% and rate as high as 4.25 and maybe even higher like 4.5% on extreme cases. 580-639 FICO your DTI needs to be fewer than 50% and in many cases under 43% if your file is not strong and the reason for the low FICO score not accepted as a good reason. For FHA loans over 640 FICO you can qualify with a house payment of 46.99% of your gross monthly income with a max of 56.99% with your total debt to include house payment. So the math is up to you now. Examples: 1,000 a month income. For 500-579 FICO your total debt to include house payment needs to be under $410 per month. For 580-639 FICO in varies and can be 43% to 50% and higher in some cases. So $430-$500 house payment. FHA loans over 640 FICO on $1,000 monthly payment your total debt can be $569 with a house payment no larger than $469. As a general rule of thumb for FHA count $7-7.25 per thousand in home price to get your total monthly payment PITI. i.e. 175,000 purchase prices payment with 620 FICO would be $1,268 give or take $20. Now you can do the math to see how much you might qualify for. Of course there is a lot more to qualifying and pricing loans but hopefully this gives you a rough idea to answer your question. You can always email or call me to clarify. Find a loan officer your real estate agent you work with likes or you got referred to.... more
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Why would you want to do this? If you are concerned about maturity date it might be time to look for a refi. Or try to work more with the credit union to see what you need to do the extend the term. Of course if you want to move on and don't want to stay in your house, find out what the value is and make your judgement from there.
First Weber Group
Certified Distressed Property Expert