My husband and I are wanting to buy a home but the mortgage lender says our DTI is too high.

Asked by Mrs. O, 36203 Sun Jul 12, 2009

We have the money for a house but we cant prove it on our check stubs. Most of the money we make is non-taxable income plus I work for myself. How can we prove to a lender that we can afford a home?

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8
David Shell, Mortgage Broker Or Lender, Pell City, AL
Thu Dec 3, 2009
Call me. We are a "Direct HUD Lender". We have our own programs and can possibly help. We are local.

David Shell
205-473-9413
0 votes
JAN KING, Agent, ANNISTON, AL
Mon Jul 13, 2009
DONNA SNIDER IS GREAT TO WK WITH, CELL 310-4557...YOU ARE CORRECT IN TRYING TO BUY BEFORE DEC.1ST. IF YOU WOULD LIKE TO GIVE ME A CALL, I MIGHT BE ABLE TO COME UP WITH MORE IDEALS---PLEASE TELL DONNA I GAVE YOU HER NUMBER!!! I THOUGHT OF JACKSON MTG. CO, LARRY JACKSON IS PRETTY CREATIVE!!!
STAY IN TOUCH,
JAN
0 votes
Mrs. O, Home Buyer, 36203
Sun Jul 12, 2009
thanks Ms. King for the advice since you are so close to me. We cant pay off the cars just yet. I know they are a lot but we had one before we got married and had to get the other when my husbands car caught fire. I can talk to some independent banks. Maybe that will help. Do you know which ones in Oxford are independent? We went to Cheaha bank and that is where we were told our DTI was probably too much. I have been told to check BB&T. Thanks everyone for your advice. I would wait but that $8000 tax incentive is too good to pass up if I can get it.
0 votes
JAN KING, Agent, ANNISTON, AL
Sun Jul 12, 2009
MRS.O, CAN YOU PAY OFF SOME ACCTS TO LOWER DEBTS??? THAT WOULD CERTAINLY HELP.
ALSO TRY TO SPEAK WITH A LOCAL INDEPENDANT BANK, TRY HAVE A LITTLE MORE FREEDOM TO MAKE DECISIONS.
JAN KING
KELLER WILLIAMS
JANKING.COM
0 votes
David Chambe…, , Saint Petersburg, FL
Sun Jul 12, 2009
That is a lot of money on cars, I think once those payments are out of the way you will have a better chance. I wonder if the broker said no even though it might not have actually not been given to the bank, "I always say I don't write loans the bank does" let the bank decide.
0 votes
Bob McClure, Other Pro, Walled Lake, MI
Sun Jul 12, 2009
good afternoon....tax returns are what they will use to establish a monthly income for you .........most lenders will also pull transcripts from the irs........two years on the job isn't really the problem unless the income isn't mostly all base pay.....if he is paid on performance, then two years could be the waiting period...with tax returns and a ytd p&l ...best regards....bob mcclure- success mortgage partners- plymouth, michigan......
0 votes
Mrs. O, Home Buyer, 36203
Sun Jul 12, 2009
well, i did have a certain price range in mind i think we can afford, around 120,000 to 130,000. We really only have two things to pay off and that is our cars. they are 370 and 440 a month and we cant pay them off right now. we have OUTSTANDING beacon scores so credit isnt a problem. we are currently paying 500 in rent and have plently left over each month so i know we can get a house. In october, my husband will be in his job for 2 years. I think that is a problem too. He will make MUCH more this year than last year but his job is not a salary. It is a production job and last years tax returns are not helping out much, even though they can look at his check stub and see he is making much more because they fired some people and there are not as many people doing his job. I do not remember what the DTI ratio was when we talked to a mortgage lender. I am just really confused on how we have money but we cant get a house. I know lenders cant just take our word on it, but there has to be a way to prove we have the money and wont skip out on paying our bills.
0 votes
David Chambe…, , Saint Petersburg, FL
Sun Jul 12, 2009
A lower interest rate will help your debt to income.

A cheaper house can help, were you stuck on a certain price range?

Paying down certain bills can help.

What is your DTI?
0 votes
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