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Old 03-24-2015, 02:37 PM
 
10 posts, read 14,256 times
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Chicago area and first time home buyer here, went FHA with down payment assistance program through Illinois smart trio program

We put an offer on a home for $142,500 and asked the seller to give us $3,000 towards closing cost assistance the contract was accepted on 2/25/15 and we are going through a mortgage broker that deals with IDHA down payment assistant programs.

The program we are going through is/was called the smart move trio program with MCC (it was no longer offered as of March 7th we applied before the 7th), it gives up to 2% down payment with 1% the buyer is responsible for. The loan amount will be for 139,918 @ 30 year fixed at 4.375% Property taxes are 3883.00 and homeowners insurance premium per year would be $678.00 with PMI at 0.85% the estimated monthly mortgage will be 1178.00 per month.

I've been employed for 8 years as of July, my wife has been employed for 8 months as of April 7th

our revolving monthly debt is 781.00 (Car Loan for 414.00 and Personal loan for 366.92)

Our combined monthly income is $4450 per month pre-tax with room for growth, I get a raise in July. My credit score for was between 780-803 and my wife's was between 790-813

I checked FHA website and it says front end DTI should not exceed 29% I calculated our front end at 26%

Our back end DTI is at 44% FHA guidelines states should not exceed 43%

With that being said does anyone feel we will run into issues? Underwriting had our income figured less but was amended after they received our VOE.

Input would be greatly appreciated
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Old 03-24-2015, 09:29 PM
 
1,049 posts, read 2,397,636 times
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I've been looking for houses and looking at conventional loans, but your interest rate seems a bit in the outrageous category, especially with a 780 credit score. Maybe someone with more experience can chime in, perhaps FHA loans are higher interest? I know the PMI is a lot higher, which keeps me from seeking one.
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Old 03-25-2015, 07:23 AM
 
2,188 posts, read 2,513,268 times
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The rate is outrageous for a normal conforming loan w 80% LTV and top tier credit, but they are doing a special assistance program so that could be why it's higher.

It's hard to give an opinion on whether your budget will work, because we don't know anything about you(other expenses, spending habits). You're spending almost half your take home pay on home/car/personal loans, so once other necessary expenses factor in like food, clothes, utilities it could be tight. Best advice I can give is just prepare a detailed budget and see if it will work. And then stick to it
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Old 03-25-2015, 08:39 AM
 
10 posts, read 14,256 times
Reputation: 11
Quote:
Originally Posted by FCNova View Post
The rate is outrageous for a normal conforming loan w 80% LTV and top tier credit, but they are doing a special assistance program so that could be why it's higher.

It's hard to give an opinion on whether your budget will work, because we don't know anything about you(other expenses, spending habits). You're spending almost half your take home pay on home/car/personal loans, so once other necessary expenses factor in like food, clothes, utilities it could be tight. Best advice I can give is just prepare a detailed budget and see if it will work. And then stick to it
That is why it's higher, its a down payment assistance program through the state. I've already done the budget we have 600.00 at the end of the month, that's after all bills are paid. I planned on putting that into a savings account.

My mortgage broker told me with the mortgage payment our DTI will end up being 45% We do have a conditional approval/commitment, I just found out we had conditional approval/commitment yesterday from my Realtor. Currently the mortgage company is still waiting on the title from the sellers attorney along with other internal items.
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Old 03-25-2015, 08:42 AM
 
10 posts, read 14,256 times
Reputation: 11
FYI the rate is fixed by the state program, I cannot buy down my rate, that's another reason why it is high
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