Answers (12)
- Andrew Adams, "RenovationSpecialist"
- Contributions:9405
Htex,
Forgive me for telling you the truth! It's math and getting a loan with a debt ratio in the 60's will not happen and should not happen!
We do not make the rules we are simply explaining them!
I truly appreciate your finacee's service to this country. However that does not change the fact that he took a loan out and failed to pay it back. It is what it is, and you need to deal with it! There are no short cuts!
Forgive me for telling you the truth! It's math and getting a loan with a debt ratio in the 60's will not happen and should not happen!
We do not make the rules we are simply explaining them!
I truly appreciate your finacee's service to this country. However that does not change the fact that he took a loan out and failed to pay it back. It is what it is, and you need to deal with it! There are no short cuts!
- HTEXfuturehomeowner
- Contributions:3
Jay not too sure but anywhere ranging 45-60 percent. Pretty much the debt isn't a factor until you add the 235-250k mortgage debt. I had no problem qualifying for 125k but to be real and honest homes in that price range in the Houston, TX area are simply in undesireable locations. If I were to find a home in that price range I would have to stay there a few years until either the short sale issue is resolved or until I get a pay raise. I would also run into the same risk my fiance had with his home. A decrease in value and or a drop in the market if I were to try and sell in the future. Waiting is an option but the purpose of these boards is to seek "expert" advice on alternative options. Thanks for your comments.
- Jay McGovern, "jaymcgovern"
- Contributions:90
What exactly is your debt to income with just your income?
- SoCal_Engr
- Contributions:6606
HTEX...
You might have misunderstood the intent...
Since you asked for advice and cannot qualify on your own at this time, then the short sale is definitely something to be addressed. Part of that is time (which is why I asked how long ago the short sale was), and part of that is going to be repairing his credit (which is why I mentioned that a good LO could help with advice in this area).
You might have misunderstood the intent...
Since you asked for advice and cannot qualify on your own at this time, then the short sale is definitely something to be addressed. Part of that is time (which is why I asked how long ago the short sale was), and part of that is going to be repairing his credit (which is why I mentioned that a good LO could help with advice in this area).
- HTEXfuturehomeowner
- Contributions:3
My fiance actually had to short sale while he was in the military serving his country overseas. He purchased a home at a very young age with the idea of being local but due to the demand of foreign diplomacy 6 of his 8 years of service was spent overseas away from the home he paid for "one time" for 7 years. The housing market in Florida was severly hit when the boom ended. The value of his home dropped 70k from his purschase price. He was never late on payments and never had any negative credit issues until it was time to transfer. At the time his re-enlistment was due to be renewed he received following orders to serve 1 year in Afghanistan. After serving 6 years away from the U.S. he was not willing to do another year away. He was denied loan mods because he had a conventional loan and the MHA option did not apply. The goverment Homeowners Assistance Program declined his application because his military installation was not located in a BRAC area. This is an issue that will now haunt him for years. So to respond to SoCal_Engr and A. Adams respect your freedom to post your comments on this blog. If the short sale was not a factor I would be in my new home now with no concerns of my DTI ratio.
- wetdawgs
- Contributions:39617
Let's think broadly about options:
a. You can go back to your old job so your income is higher and you qualify more quickly.
b. Your husband can pay back the difference of the short sale, and you can move forward as if it hasn't happened (except for the ding on the credi record for the delay in payment).
c. Save up a ~50% down payment, and look for hard money lenders at a premium interest rate.
d. Rent for now, while you are saving up 20% down payment and in a couple of years after his short sale you'll be back on the road to home ownership.
e. Purchase a house that you can afford on your $40 k salary.
I know you don't want any of those answers, but with your husband's salary comes his history of shorting a lender on his home mortgage. No one has asked him to be perfect, but certainly not default on a major amount. Lender's don't like that behavior!
I, personally, am delighted that the rules for getting a loan are tighter. Although, I certainly have sympathy for those in your shoes.
- SoCal_Engr
- Contributions:6606
How long ago was his short sale? It takes some time to recover from that, but not forever. A good LO should not only be able to tell you what you do (or do not) qualify for now - but what steps to take to help you qualify down the road.
- Bruce Erickson, "B Erickson"
- Contributions:50
Yes my post was a rant! And yes many of the changes in the lending guildlines have been good both for the buyers our economy. But at what point does it become more damaging than benificial? I think we have crossed that line.
HTex .. I am sorry to have deflected the discussion away from your question. Take a hard look at your long term future goals and look for a solution that makes them come true. Justin's suggestion is a good one. It will take you a short waiting period and a committed saving plan but it will work.
Best of luck .. Bruce
HTex .. I am sorry to have deflected the discussion away from your question. Take a hard look at your long term future goals and look for a solution that makes them come true. Justin's suggestion is a good one. It will take you a short waiting period and a committed saving plan but it will work.
Best of luck .. Bruce
- SoCal_Engr
- Contributions:6606
"Its as if they have decided that only the rich and perfect (In their eyes) should own a home..."
Bringing sanity into the lending guidelines is a good thing. Resorting to hyperbole because those guidelines shrinks your potential client pool is very egocentric. Those folks who are now having issues getting loans are likely being protected from being the "next wave".
Bringing sanity into the lending guidelines is a good thing. Resorting to hyperbole because those guidelines shrinks your potential client pool is very egocentric. Those folks who are now having issues getting loans are likely being protected from being the "next wave".
- Bruce Erickson, "B Erickson"
- Contributions:50
Welcome to the new world of home financing that our government is building for us. Every month they and the lenders have added costs and taken away options for buyers.
The crazy days of breathing on a mirror and getting a loan was not right but what they are doing to us now is not right either. Its as if they have decided that only the rich and perfect (In their eyes) should own a home and the rest can just rent from the owner of real estat.
I wish you good luck in working out a good option to get a home .. Bruce
The crazy days of breathing on a mirror and getting a loan was not right but what they are doing to us now is not right either. Its as if they have decided that only the rich and perfect (In their eyes) should own a home and the rest can just rent from the owner of real estat.
I wish you good luck in working out a good option to get a home .. Bruce
- Andrew Adams, "RenovationSpecialist"
- Contributions:9405
You cannot use his income and not use his debts! no way that will happen the rest is math you can only qualify for the loan amount that your income will support. No magic lenders, No magic Loans!
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:4280
Your dilemma is understandable but I doubt you will find any programs immediately. Future earnings are not something an underwriter can consider.
How much down payment do you intend to make? 20% down 2 years from short sale would be one option to look forward to with conventional financing.
How much down payment do you intend to make? 20% down 2 years from short sale would be one option to look forward to with conventional financing.
High DTI with excellent history but still am unable to qualify for a 235-250k loan? Help Advice
Any lenders qualifying individuals with great credit historys but low 40k range of annual income. Changed companies because of advancement opportunities but the cost of future advancement brought lower annual wages. I know in years to come I will be satisified with my decision to transfer companies but now it is ruining my approval options and loan amount. *NOTE* My available income does not reflect the actual amount I am able to afford or how much I pay towards my monthly debts. Due to my future husbands previous SHORT SALE he is unable to apply as a co-applicant. Our combined income annually is 115-130k. Any help would be appreciated. Also considering Builders financing incentive if available.
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.