Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
When applying for a mortgage does the lender look at how much debt you have or just your debt to income ratio? How do you figure out your debt to ratio income? For example, if our joint income is about $5400 and we have about $1700 in bills including car notes, credit card bills, etc. We pay about 1100 in rent. We have about $2500 left over for grocery, utitilies,etc. Dh scores are 692, 659 & 635. We are going to apply for a VA loan. I work part-time and have only been on the job a few weeks. We leave in a community property state, so we both have to apply for the loan.
Do you think we will be able to get a mortgage for about $220k?
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,848,281 times
Reputation: 958
If you are working part time and have only been working a few weeks then don't include your income as the lender will not allow it anyway.
When calculating debt to income ratio take the monthly debt obligations and divide by total gross monthly income. Don't count your current rent although you will want to include the proposed mortgage payment in that. For DTI purposes, utilities and groceries are a non-issue. HOWEVER, VA does have certain residual income requirements that vary depending on family size and location. The residual income calculations will include things like taxes, social security, and utitlities and maintenance (a standard formula of $0.14 per sq ft is used for this calculation if I am not mistaken). I honestly could not tell you if I felt you could qualify for that or not without quite a bit more info.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
