Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 3 months ago

FHA Debt to income? ?

I’m under contract and now trying to get real

Approval , my dti is 39/46 and my credit score is 660! I make 2200 a month and my debt before mortgage is 144$ a month. My mortgage will be 817 monthly Including all insurance and taxes. My loan offer didn’t count my 20 hours over time a month so it shows I make 2080 monthly .  My loan officer told me I will have to go under manual underwriting and I’m waiting to hear on final approval. Does anyone have any experience In higher dti? Kinda freaking out when I’m suppose to close December 5th!!! 

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  • 3 months ago
    Favorite Answer

    You should be fine under manual underwriting.. Your ratios are fine, they are just a bit over the guideline for automated underwriting. Your overtime has to be consistent for 2 years before we can include it. And your credit is okay.

    Source(s): Mortgage lender 33 years.
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  • 3 months ago

    If this was 30 years ago when FHA were 90% of my sales and 28/36 were the qualifying guidelines, you would not have a prayer. I find it hard to believe, after the bubble of the early 2000s that burst because of too-easy mortgage guidelines, that FHA is allowing above that.

    However, I just took a quick look at FHA, and the maximums are 31/43.  The individual lender does have the final say on whether or not to relax those numbers higher, and they can, but in my opinion, you still don't have a prayer. 

    If your overtime will be consistently reflected in your earnings over the past year or longer and the employer will write a letter stating that overtime is guaranteed for the foreseeable future, a manual underwriter might be swayed by this. It's the only hope I see for this application.

    If the lender will only count $2,080 as your monthly gross, that translates to exactly $12 per hour.  40 hrs weekly x 52 weeks = 2,080 hours.

    20 hours OT @ $18 = $360 additional per month. Added to $2,080, it's $2,440.  So I don't see how you came up with $2,200 a month unless you overstated the OT.

    But assuming you really earn an extra $360 per month in OT, your revised DTI would be 33.5/39.4.  Even that is borderline.

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  • Eva
    Lv 7
    3 months ago

    Your score is low and your dti is bad. Your income doesn't indicate that you can handle a mortgage of that size, even though you have very little other debt. I wouldn't count on getting approved. Sorry.

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  • 3 months ago

    Most of the time lenders will not allow overtime.  Your monthly debt, including mortgage, is $961.  Now add to that living expenses and your monthly debt exceeds 50% of your income.  Keep your fingers crossed!

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  • martin
    Lv 7
    3 months ago

    They will try to help you out with the loan you need, as long as it isn't unsafe for them to count on you paying monthly. For example, you can't count on overtime continuing, so they had to eliminate that. A lot depends on how solid and secure you are at your present job. They will be checking on that.

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  • 3 months ago

    i'd be freaking out when the bills start coming in....is that 2200 before taxes?

    utilities (heat/AC, water, sewer, cooking gas) can easily be 300/month

    add TV/internet/phone

    food...plan on minimum 200/month per person (if frugal) and 100 for other various things like soap and toilet paper.

    transportation

    repairs

    clothing

    medical

    other debt 144......

    low end, about $2000/month.......anything major...you have problem...

    overtime can be counted if it has been consistent long term..HEY ACE< JUST BECAUSE YOU DON'T HAVE MEDICAL EXPENSES NOW, DOESN'T MEAN YOU WON'T.....

    I fell down the stairs moving into my new home, a year later, I got mono and was out of work, a year later I had a severe injury....

    and I am guessing you are uninformed about exactly what med insurance covers--since you don't have medical problems and haven't experienced medical bills....there are copays, deductibles, things not covered at all....at minimum you need $50/month budgeted for medical...

    are you saying you have  NO premium for your insurance?  often people have to pay at least part of the monthly premium.

    REALLY?   now you mention husbands income....and you can't count it?  that makes no sense.....does he have a deplorable credit score?

    assuming he makes at least 1500/month you should be comfortable unless you have a major expense.

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    • Ashley3 months agoReport

      Im Sorry that happend to you , I do understand insurance and how much income we have. Thank you for your opinion. 

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