Vacating a jointly owned property for 2nd FHA loan. Can I be exempt from the old mortgage when figuring my DTI ratio?

Asked by jefplusf, Las Vegas, NV Sat Feb 23, 2013

My brother and I bought a house together in 2009 with an FHA Loan. Fastforward almost 4 years later and he has since gotten married and now has 2 kids. Im ok with it, but it's not an ideal situation for a 23 year old. According to HUD, if you're vacating a jointly owned property, you can qualify for a second FHA Loan. My question is, will I qualify for a loan based on a debt to income ratio of the full mortgage for the first house and the second house, or would I be exempt from the debt of the first house? Ill be putting down 3.5% and looking for something $100,000-$150,000.

Some rough figures I did in Excel.

1. Front End DTI(New mortgage ~$1000 divided by gross monthly): 20.6%
2a. Back End DTI(Old mortgage new mortgage auto divided by gross):49.59%
2b. Back End DTI(New mortgage auto divided by gross): 26.87%

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Answers

2
john peters, Agent, Henderson, NV
Sat Feb 23, 2013
If you can prove that your brother is paying the Mortgage, the monthly pament for a year, the Lender won't count the Mortgage payment.against your DTI. Your calculated DTI, even with both Mortgage payments you should qualify for an FHA loan. However, there are many variables, so please call me and we can discuss your qualification for a loan and we also have a Real Estate Co. in our office
Thank you, Johnny Peters, North American Financial, 939-2474
0 votes
David Cooper, Agent, Los Angeles, CA
Sat Feb 23, 2013
What name is on the deed of trust? Are you a cosigner on the mortgage?


David Cooper
http://www.lasvegaswinner.org
0 votes
We are both occupant co-borrowers.
Flag Sat Feb 23, 2013
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