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Profile picture for aeo2626

Can I get an FHA loan with a front-end ratio of 20% but a back-end ratio of 46%?

I have a credit score of 678, a down payment of 3.5%, loan would be $117K and $2K seller-paid closing costs. Not a whole lot of extra cash in savings though. I also have a 100% on-time payment track record for the last 5 or so years. 
  • February 23 2012 - Mt. Washington
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Answers (4)

Profile picture for ewpdawes
It sounds like a Logical purchase to me.  The only stone left 'unturned' would be running your file through FHA's online underwriting system to see the response.

Feel free to email or call with questions or deal with any FHA Approved lender.
  • February 24 2012
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Profile picture for aeo2626

On time track record for approx. 9 accounts (not including utilities, but they are all on time too). The house payment would be about $150 more than I pay in rent now.  I've been at my job for five years (same industry for 10 years) and there is plenty of room to advance and increase salary.  It's a big company. 

  • February 23 2012
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Profile picture for ewpdawes
Is it possible for this to be approved?  Yes

Will it always be an "Approve / Eligible?"  No

There would need to be acceptable 'compensating factors' to exceed your back-end / debt ratio.

How much have you been paying in rent prior to this purchase?  The 'on-time payment track record' consists of how many accounts?  How long have you been on your job?  Do you have the potential to see increased earnings at your job?
  • February 23 2012
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Yes.   46.99 Front and 56.99 Back are commonly approved for FHA financing.    Your ratios are very comfortable and you should not have any difficulty.
  • February 23 2012
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