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Can I get a loan with a 38% debt to income ratio, no late pays ever, my fico 654

  • May 10 2009 - Saint Louis
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Answers (26)

google quicken complaints. Ask the person who preapproved you what debt ratio they are using for the approval.
  • May 15 2009
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Has anyone heard of this quicken loans, they gave me a pre-approval letter and looked at my report and assured me they can get me approved.
  • May 14 2009
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I wish it's a truck and of course no one wants to give what it's worth, believe me I will give it up in a heart beat for this house. Two fp 1900 sqf .5acres, so much for the man cave.
  • May 14 2009
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Ok, then if your student loans are not in deferment and you have more than 10 car payments left ( not a lease ), you would have to either payoff the c cards or sell the car. I would dump the car and buy the house since you will be getting a lot of equity. You can always buy another car later.  
  • May 14 2009
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Yes, I have a few, but nver late
  • May 14 2009
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wincoc, please confirm you are paying $400/month on a credit card, is that correct?
  • May 14 2009
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Thanks everyone for the help, looks like for the most part part it's pay down the debt before I loose out on the stimulus deal. The house is a huge lost. Thanks again everyone.
  • May 14 2009
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Wincoc,

Just wanted to check back in and see how you were doing. The short answer to your question is no you may not roll debts in on a purchase. You may only get a loan based on the agreed selling price not the appraised value if it comes in higher. So if it appraises for 110k and your have a contract for 100k all numbers will be based on that 100k. Your downpayment, debt to income ratios etc. Other people have mentioned it but remember that the debts used to determine the DTI is only what appears on your credit report. Unless you have child support or alimony. 
 Hope this helps you out. If it doesn't just keep posting. If you haven't though post a quote on Zillow and talk to a few lenders from your area and see what they recommend.
Good luck.
  • May 14 2009
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car loan 600,credit card 400, loans 280. Is it possoble to roll the credit card and student loan into the mortgage since the value of the house will be more than the purchase price.
  • May 14 2009
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Your house payment would be aprx $480/month, so that gives you a debt ratio of around 63 and am guessing that will not work. Break down the $1280 expenses, list each debt and amount. You only have to count debts reported to the credit bureaus.
  • May 14 2009
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The 1280 is my monthly debt without rent or utilities, can I still get this done.
  • May 14 2009
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You should be able to get this done without much of a problem. You are going to want to go with an FHA loan or a rural devlopement loan if the property is eligible.

Both programs typically require a minimum credit score of 620. The only thing I'm a little confused about is your monthly debts of $1280. If that includes your current rent then you should not be including that. When you are calculating your current debts (before the new house payment) just include the things that show up on your credit report (credit cards, car loans, student loans, ect). Things like utility bills, phone bills, cable bills, ect do not usually show up on a credit report and aren't factored into your debt ratios when qualifying for a new place.

My advice to you is to speak with a mortgage professional and have them run the numbers for you. Make sure you tell them that you are interested in an FHA loan or a rural development loan because a conventional loan will be too expensive at your credit score.

Again, from what you've posted here I think you should be able to get this done at a nice interest rate.

Good luck!
  • May 13 2009
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So what I'm reading here my base income 33,600 a year, my monthly debt is 1280 and my credit score is 654 I can get a mortgage for 57,000. The reason why I'm asking this again is all of these mortgage calculators say no. I'm confused
  • May 13 2009
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Yes - FHA - All Day
  • May 13 2009
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The short answer is "Absolutely"!  Most likely you will want to compare your loan choices and evaluate which type of loan is best for you, whether you want a conventional loan or government loan.  In today's market place, conventional financing has gotten pretty expensive in certain circumstances because there are adjustments to the interest rate for a score like yours, for the type of property and for the loan to value.  I generally like to provide my customers with a comparison chart so they can see the differences in loan types in order to make an informed decision.

[content removed by moderator for being self promotional]
  • May 13 2009
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Going conventional will cost you aprx 2 - 2.25 discount points for the score, with 5% down and high MI if you can get it. If you put down 20%, the discount points would jump to about 3 points, which is what I meant by expensive. You absolutely want to do an FHA or USDA loan. Getting $50K instant equity is a beautiful thing, close it before they change their mind.
  • May 13 2009
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I'm in Missouri the house I looking at is 57,500. My income $33,600  monthy debt is $1280. The house actual valley $109,000.
  • May 12 2009
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The OP is the Original Poster, which is you.  Sorry for using lingo . . .

Wincoc,
What might help is that you give more detail to your loan request: loan amount, value of you home, income and your middle credit score and the state you home is located.
  • May 12 2009
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I put out aa couple of quote request, no replies yet 2 days
  • May 12 2009
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What is an OP
  • May 12 2009
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Brent,
Nice post. Can I remind you that the OP requested advice and not experience from you?
You might want to be more specific on, "Not the best rate," and just tell the OP that the deal is doable.
In fact, the OP gave virtually no information to give any advice at all.

Wincoc,
Can you, so any lender on Zillow, give the value of you home and what county in Missouri it is so the suggestions can be better?

I, and Brent Mendelson, from Choice Finance, don't know a hill of beans bout your state or county . . .
  • May 12 2009
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Yes you can with the information you provided. I just priced one out for a client with that exact same score and it can be done. You won't get the best rate though. And it matter is it a purchase or a refinance, cash out, things like that. Put a quote on Zillow and then speak to a few lenders and see what they say. Good luck.
  • May 12 2009
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Conventional will be very expensive so go FHA unless a Jumbo loan.  38% back end is excellent.
  • May 10 2009
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Rent is not considered "debt".   So, what you are saying is that you have no real debt (no credit cards with outstanding balances, no student loans, no car loans etc)  but are paying rent, utilities etc.  The standard month stuff.

  • May 10 2009
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Actually nothing when you take into account my mortgage will take the place of my rent.
  • May 10 2009
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If your current debt to income ratio is already 38%,  what level of debt are you proposing to add for a mortgage payment?   
  • May 10 2009
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