Getting a mortgage, pending the sale of your home will not be an issue and resolve you dti. Since you have 3 offers, discuss the merits of each one with your agent and my recommendation would be on the one who wants it the most.
Your lender should submit your application without your current mortgage and indicate that it's to be paid off. You should receive a conditional approval subject to proof that that loan is closed. This is very normal and you won't have to pay premium rates or fees.
Thank you for the update, your situation should resolve itself.
The first thing is to analize your income in different ways:
1. as wage earner
2. Your tax returns
3. assets (our asset utilization program)
Many lenders that do Portfolio loans will be able to do that for you here at Kinecta FCU we hae different programs and we are a portfolio lender too.
Please coantact me andi will see your options.
It will all depend on exactly what type of loan program you are attempting to qualify for.
For a Conventional mortgage (Fannie Mae or Freddie Mac), the maximum debt to income ratio is 45%. In certain cases, they may approve up to 50%, but nothing higher than that right now.
With an FHA mortgage, HUD will sometimes accept a DTI of up to 56%. I would need to review all of your doumentation to be able to properly advise you on your options.
As one of the largest direct lenders in the country, Prospect Mortgage offers one of the largest selections of loan programs available. In addition to the standard conventional, FHA, VA, USDA, and Jumbo, we also offer a wide range on Renovation loan programs. Our Renovation programs include FHA 203K (Streamline & Consultant), HomePath Renovation, and HomeStyle Renovation. In addition, we also have an FHA 580-639 FICO program for borrower with previous credit issues.
Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Rather than shop for a lender willing to do a risky loan, which if they would, it would come with a higher rate and fees, why don't you resolve the dti?
The issues with debt to income are either too much debt or not enough income. If you look over your credit report you may find some accounts that are reporting in error. You may have paid them off or at least down, the payment reflected on the report may be inaccurate or the account may not even be yours.
Regarding your income, are you basing your question on your gross or net? Lenders consider gross income. If you are paid hourly, it's easy to figure but usually they take your most recent pay stubs and your previous years W2. If you are not using all of your income, you could be hurting your chances.
If your income and debts are correct, can you pay off some debt? Go over your various accounts and select the ones that if removed will have the greatest impact on your ratios. Reducing some down payment to erase some debt may be a good trade off if you need to.
Finally, if the income and debt are all correct, you are buying more home than you can afford. The reason lenders have these guidelines is to protect you the borrower and themselves as a lender. If they did approve a dti of 55% and you either incurred any new debt or lost some income you would be in deep trouble. Don't put yourself on the edge just because someone may be willing to put you there, it's not wise money management.