Home prices have plummeted since your posting 2 years ago. If your debt-to-income ratios have remained the same, you will qualify for that home of choice you have been longing for. Check in with Ted Mackel or Bonnie Sterling to arrange a complimentary 15 minute Buyer Consultation. Interest rates are expected to increase in the several months due to national economic factors, so timing is important for you to capitalize on this window of opportunity. Otherwise, you may need to wait until you become a senior citizen :-)
Before you go to the next step of either throwing in the towel, changing areas or waiting for a miracle by winning the lottery, try getting a second opinion. Please remember every lender is different and all loan officers are not equal. Although there are certainly some great ones out there, I run into some real winners. Please take the time and speak to another LO just to make sure your really capped at the lower sales price.
Best of Luck!
As mentioned below, your DTI ratio is one of the most important factors in determining a pre-approval. One thing you can consider would be paying down some of your existing debt that appears on your credit report. Removing this debt gives you a little more flexibility to increase your buying power. However, you then have to factor in items like "will you have enough funds to cover your down payment & closing costs." You should speak to your loan officer and see if there are any revolving accounts, auto loans or other installment loans that you could pay down to help increase your buying power.
One more thing to consider is to ask your loan officer what interest rate he qualified you at on an FHA loan. Right now, rates have come down and conforming FHA rates are around 4.50%. If he qualified you much higher, bringing the rate down will lower your DTI.
If you have any questions, i'm more than happy to help.
FIrst Capital Mortgage
DIrect: (310) 434-1718
If you are interested in a townhome in the San Fernando Valley, I have a beautiful listing -- 3 bedroom townhome in Winnetka that is almost 1600 sq. ft. for $299,999.
Century 21 Hilltop
As a realtor & homeowner I would like to advice you to purchase a home with what you really can afford/ that will be what lender will qualify you for not what you think you can pay for. In this down economy it is better be smart rather than sorry ...loosing your home later or struggle with your mortgage payment in the future is not a good idea. This is what happen to most of the homeowners in this economy buying a home more than they can afford. It is always best to keep a cushion in your mortgage payment in case if you have hardship in the future or if you loose a job,loose your income,etc.
Some purchases you can ask seller to pay your closing clost up to 3%. You can certainly try for that. I'll be happy to guide you with your purchase. Please feel free to call me. (805) 520-1660 Direct or (805) 795-1599 Cell
There are a couple of different ways to bypass that problem, including reducing the amount you purchase the house for, getting creative with financing (owner financing, etc.) and there is also the option of a co-signer. However, having a co-signer ties them up with the property as well - which is a risk on both of your parts.
I have the ability to help you out with this problem. Feel free to contact me if you have any questions or are interested in qualifying for a purchase loan.
(954)764-7064 Office (Ext. 214)
Your question has many facets. Why are your ratios out of wack if you have income? Do you have debt you can pay down to help your ratios? This may be easier.
A co signer will help but you cosigner will have to be on the purchase contract and will have to be on title to the property. If your co-signer is married then on FHA they will run the non occupant co borrower and the spouse of that co borrower.