What do mortgage companies use to determine your loan amount?

Asked by Erin, Daytona Beach, FL Sun Apr 29, 2012

We would like to buy a home in the near future. Only my fiance would be on the mortgage due to my poor credit rating and I am currently not working. I think he has a high debt to income ratio with student loans,car loan, and credit card payment. However he makes gross 47K a year. We are currently affording 900 dollars a month in rent and are making it buy. Any advise, thanks!

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Beate Rodrig…, Mortgage Broker Or Lender, Sunrise, FL
Mon Apr 30, 2012
Hello Erin,

to determine your loan amount you have to subtract the downpayment from the salesprice.

Let's say you go with a FHA loan program; your downpayment would have to be 3.5 % of the salesprice.

Your fiancee would need to meet the following requirements:
- good credit score (should be at least 620 to get a low interest rate)
- good credit history (no late payments on student loans and rent)
- steady work history (at least 2 years)
- Debt-to-Income ratio should be 31/43
- funds for downpayment and closing costs (financial help from e.g. family members to pay for the closing costs is acceptable).

Please contact me directly, if you want to discuss your own financial situation with me. It would be my pleasure making your wish of homeownership come true.

Best Regards,
Beate Rodriguez
Lic. Loan Originator
Cell: 954.695.4849
Beate.Rodriguez@HGFLoans.com
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