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Old 06-14-2008, 06:23 PM
 
4 posts, read 26,860 times
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Is the FHA the best loan available for having a higher than normal DTI? I know lenders have tightened up quite a bit, so I would imagine 29/41 is the highest one can get? Is FHA 29/41 (I read somewhere 31/43)? Can just one person be on the loan for a married couple?

We both have excellent credit, but I have another year of post-graduate work and we are sick of renting. The reason we would just put my wife on the loan is that at this point I am bringing no income to the table, but I do have some student loan debt. We just want to get into a condo/townhouse that we could stay in for a few years before we want to start a family. Once I graduate, the DTI would be a non-issue, but we just really want to get into something now.

Thoughts?
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Old 06-14-2008, 09:03 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,100,301 times
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depends....what will it be with your name on the loan?

With excellent credit the DTI can be exceeded...

Also, with a down payment or reserves.
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Old 06-14-2008, 09:52 PM
 
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As of right now, I have no debt other than student loans. I am not currently paying on them as they are in deferment while I am in school. So I am not sure what it would be with me included. I currently have no debt that we are paying on, but a lender will clearly see that I will. I also have no income at the moment, so I won't help that way either. I am just not bringing anything to the table, so I don't really see the point in me being included.

We have about $20k in cash and are looking at houses in the $200k range. I suppose that puts us at about 5% down (after fees and leaving some reserve).
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Old 06-14-2008, 10:13 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,100,301 times
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they will not count it if you can show proof that it's being deferred for over 12months.

I would see if you can do a DPA (down payment assistance) to help you with the closing cost and the 3% down payment

Quote:
Originally Posted by KnightNole View Post
As of right now, I have no debt other than student loans. I am not currently paying on them as they are in deferment while I am in school. So I am not sure what it would be with me included. I currently have no debt that we are paying on, but a lender will clearly see that I will. I also have no income at the moment, so I won't help that way either. I am just not bringing anything to the table, so I don't really see the point in me being included.

We have about $20k in cash and are looking at houses in the $200k range. I suppose that puts us at about 5% down (after fees and leaving some reserve).
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Old 06-15-2008, 10:51 PM
 
4 posts, read 26,860 times
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Quote:
Originally Posted by renriq02 View Post
they will not count it if you can show proof that it's being deferred for over 12months.

I would see if you can do a DPA (down payment assistance) to help you with the closing cost and the 3% down payment
Do I have to be included? I see no reason to be if I don't have to. Can't my wife just buy the home herself?

Also, does the FHA sound like the way to go for us? (with what little info I have provided)
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Old 06-16-2008, 07:29 AM
 
Location: Charlotte, North Carolina
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look into the LPMI option. Lender Paid PMI....they may offer it in your area/zip code at 5% down. It's normally at 10% down across the US.

Most places in NC are at 5% down.

They may require you to be put on the application to check to see if you have any liens/judgements in your name
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Old 06-19-2008, 11:02 AM
 
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29/41 is the old FHA DTI limits. 31/43 is the current. you can exceed the 43 (sometimes as high as 50). I see conventional up to 65 with some of my programs (depends on credit, down pamyent, etc). Conventinoal will also let you count certain incoems sooner (OT, Commission, bonus, etc). But, conventnioal will count student loans all the time.

I disagree with the LPMI option. PMI is tax decudtible now if your household income is under 110K.

Compare 3% down (either paid by you are through an assistance from the seller) FHA to 5% down conventional. See which approve you and what the differences are in the numbers.

There is no rule that says you can't apply for both!
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Old 06-19-2008, 11:06 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,100,301 times
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And is being renewed by Congress like every 2yrs.
What if they dont renew it anymore?

Also, with FHA you will be required to pay a 1.5% funding fee, AND pay the 0.5% monthly MIP.
With 5% down, and a 720+ score, the LPMI option will be better.

Quote:
Originally Posted by NJ987654 View Post
29/41 is the old FHA DTI limits. 31/43 is the current. you can exceed the 43 (sometimes as high as 50). I see conventional up to 65 with some of my programs (depends on credit, down pamyent, etc). Conventinoal will also let you count certain incoems sooner (OT, Commission, bonus, etc). But, conventnioal will count student loans all the time.

I disagree with the LPMI option. PMI is tax decudtible now if your household income is under 110K.

Compare 3% down (either paid by you are through an assistance from the seller) FHA to 5% down conventional. See which approve you and what the differences are in the numbers.

There is no rule that says you can't apply for both!
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Old 06-19-2008, 09:48 PM
 
Location: Phoenix
73 posts, read 230,638 times
Reputation: 27
Effective 07-14-08, the upfront for 5% down at 720 FICO will be 1.25% with 0.5% monthly.

Why are you bothering with FHA, anyway? 30-yr fixed? I like the LPMI route, but you need to have them compared for you.
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