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Answers (8)
- Manuel Prado, "Manuel Prado"
- Contributions:196
Lenders use different "rules" for temporary buydowns though. Some will hold you to a max back end debt ratio of 43, some will use the note rate to qualify.
Most underwriters will use your present income and compare it to your previous two years. Do to the high ratios, they will compare your new home payment with your current rent looking for any payment shock. A conventional loan, because of mortgage insurance, will not touch your scenario.
Your best bet would to look into a non-occupant cosigner with an FHA loan. Before you spend money on the appraisal, make sure you can be fully approved.
- hinrg916
- Contributions:3
Thanks for all your responses.
Steve - I do not feel I misled my lender. My pay check stated "bonus" on it, and if the lender was doing his job correctly he should have seen it.
I have done some research on the buy down for a loan and will mention it to my lender. Will let you all know what happens!
Thanks again.
Steve - I do not feel I misled my lender. My pay check stated "bonus" on it, and if the lender was doing his job correctly he should have seen it.
I have done some research on the buy down for a loan and will mention it to my lender. Will let you all know what happens!
Thanks again.
- Barbara Q.
- Contributions:49
I agree with Barry. If you can verify your income and the numbers work... -You are a prime candidate for a Temporary Buydown.
You can play with the numbers:
http://www.321advantage.com/buyers-calculate-your-rate
You may be able to use some of the dp money to pay discount points at closing to pre-pay interest and lower your interest rate and payment. Ask your Mortgage Representative.
I believe that you would be qualified at the 2nd year rate.
3-2-1 Buydown would cost ~$6500 at closing
2-1 Buydown would cost ~$3200 at closing
- Steve Felty, "SteveFelty"
- Contributions:396
I am unclear as to why you wouldn't use the loan officer you started with??? While many lenders here would be glad to try to assist you, it sure puts us un an uncomfortable position when you ask for a reputable lender, but just one paragraph above tell us that you misled your original lender - are we next???
With at least 10% down, you can have a non-occupying co-borrower included on your loan which hopefully would give enought additional income so you would meet qualification requirements.
With at least 10% down, you can have a non-occupying co-borrower included on your loan which hopefully would give enought additional income so you would meet qualification requirements.
- Ann Marie Focca, "Ann Marie Focca"
- Contributions:258
If you are still in need of a Lender, call Anthony Focca at Platinum Finance Brokers [contact info removed by moderator]
He has been known to work a few miracles.
Tell him his Mom (Ann Marie) sent you.
He has been known to work a few miracles.
Tell him his Mom (Ann Marie) sent you.
- Liberty Mortgage
- Contributions:470
I am not sure if you will qualify at all- Please consider the following-
In order to use your income- I will call it part time for now- We must have 2 years of it- (part time.) Even though you will work full time once you graduate, that cannot be considered by FHA guidelines. Additionally since it appears the semi annual bonus is included in your income, in order to use that, we must have 2 years of that as well. Your only option is FHA due to ratio's being above 50% and the 2 year requirement is a must. Also, it does not matter what your 2 recent paystubs show- ((you could of worked more hours, etc-)) The 2 recent paystubs are only if a factor if you received a raise.
Again, I am not sure how you can get a conventional conforming 30 year fixed. With a purchase price of $150K and you putting less than 20% down you cannot get mortgage insurance as your DTI is above 45%. Also, Fannie caps at a 50% DTI (max, depending on findings-).
I would go back to your loan officer and ask him for some assurances on how he came to his findings-
Your only option is to go FHA if you have 2 years part time employemnt- You would then need a non occupant co borrower-
In order to use your income- I will call it part time for now- We must have 2 years of it- (part time.) Even though you will work full time once you graduate, that cannot be considered by FHA guidelines. Additionally since it appears the semi annual bonus is included in your income, in order to use that, we must have 2 years of that as well. Your only option is FHA due to ratio's being above 50% and the 2 year requirement is a must. Also, it does not matter what your 2 recent paystubs show- ((you could of worked more hours, etc-)) The 2 recent paystubs are only if a factor if you received a raise.
Again, I am not sure how you can get a conventional conforming 30 year fixed. With a purchase price of $150K and you putting less than 20% down you cannot get mortgage insurance as your DTI is above 45%. Also, Fannie caps at a 50% DTI (max, depending on findings-).
I would go back to your loan officer and ask him for some assurances on how he came to his findings-
Your only option is to go FHA if you have 2 years part time employemnt- You would then need a non occupant co borrower-
Have you considered a 2/1 or 1/0 FHA Buydown? This would allow you to qualify at a lower rate. This type of loan was designed for borrowers such as yourself, because it is anticipated that your income will increase after graduation, thereby allowing you to afford your housing payment after the increase in rate.
Ask your loan officer to look into the "Buydown" - this may help alleviate your concerns because of high DTI.
Ask your loan officer to look into the "Buydown" - this may help alleviate your concerns because of high DTI.
- DaveAndersson
- Contributions:268
Can you get a non-occupying co-borrower (relative) to help with qualifying? Part time work is difficult to use for qualifying. Have you considered an ARM? Bringing the rate down to the low 4s/ high 3s would lower debt ratio.
I need a loan
I am in a position where I must find a lender and close within 45 days. The house I am pursuing is a short-sale and we now have written approval from both lien holders. Now it is up to me to close the deal.
I am currently a full-time student at a university planning on graduating after the Fall 2010 semester. I currently work 25 hours a week, by choice, in order to focus more on school. I plan on working full time from this day forward since I only have two classes remaining next semester and I will need to pay all costs associated with home ownership.
My monthly mortgage payment for this home would be around $1,200 including PMI and taxes. My gross income from my most recent two paychecks is around $2,200 leaving me at a 55% DTI. I have no other debt; car is paid off, no credit card debt, etc.
I was able to put an offer in on this house with a conventional 30 year fixed loan at 5.125%. The reason being is because I supplied my loan officer my recent pay stubs at the time one of which included my semi-annual bonus check. Unfortunately, my loan officer thinks i gross about $3,000 a month which is currently not the case but will be from now on. I am planning on putting $25,000 as a down payment and financing $150,000.
My credit score is excellent (750+). I am looking for a reputable lender who is willing to look closer into my situation and help me achieve my ultimate goal of owning a home.
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