Answers (14)
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Did your broker give you the option to change the program to a lower interest ARM that would put your DTI at 45% or less? That may work for you. .... Best wishes, Rudi
- C L Kennedy, "Entasia"
- Contributions:95
Yep, I'm on point with Andrew. No laws about it.
But as mortgage consultants, we want mortgage loans to close. So if your guy/gal wants to get paid, he/she will work hard to see if the investor will make an exception. I will confess, it is more difficult to get exceptions these days.
Of course, if there is another egg that must be fried in the pan, as outsiders, we don't know what's going on. Like perhaps the requirement was always max debt ratio of 48 but somebody missed it early on.
If you are refinancing, is there room in the loan to pay down any debt so you can get that ratio down? Can you pay a point to get an even lower rate to get the ratio down?
Again, good luck.....
But as mortgage consultants, we want mortgage loans to close. So if your guy/gal wants to get paid, he/she will work hard to see if the investor will make an exception. I will confess, it is more difficult to get exceptions these days.
Of course, if there is another egg that must be fried in the pan, as outsiders, we don't know what's going on. Like perhaps the requirement was always max debt ratio of 48 but somebody missed it early on.
If you are refinancing, is there room in the loan to pay down any debt so you can get that ratio down? Can you pay a point to get an even lower rate to get the ratio down?
Again, good luck.....
- Andrew Adams, "RenovationSpecialist"
- Contributions:9404
No law says you have to qualify...I would be pissed that they told you were approved but I am sure the approval letter has more outs for the broker than in a baseball game.
- Nothappy
- Contributions:4
Yes, this is a 30 year Fixed Refinance. Current rate of 6.625.
I knew when the broker called that 'something didn't smell right' as the mortgage rates took a hike. Thanks for the clarification.
Is there a rule or law I can quote when calling back...Since I am not a mortgage expert, just need some details to take to the table on this one.
I knew when the broker called that 'something didn't smell right' as the mortgage rates took a hike. Thanks for the clarification.
Is there a rule or law I can quote when calling back...Since I am not a mortgage expert, just need some details to take to the table on this one.
- C L Kennedy, "Entasia"
- Contributions:95
I can see why this would make you unhappy.
I don't think you mentioned whether you are buying or refinancing. If you are buying, you no doubt have more of a predicament.
Please note that the debt ratio change was a change for that particular investor. If you are trying to close a purchase loan soon, then start seeking another lender immediately. Something tells me you are refinancing. If that's the case and the low rate is your primary concern, then if you can't close the current loan, that rate is gone for now. Investors often give a window of time before they will apply underwriting changes to loans in process. You should definitely put up a fight about this. You have everything to lose.
I presume you are certain you were originally approved?
Good luck...
Best regards....
I don't think you mentioned whether you are buying or refinancing. If you are buying, you no doubt have more of a predicament.
Please note that the debt ratio change was a change for that particular investor. If you are trying to close a purchase loan soon, then start seeking another lender immediately. Something tells me you are refinancing. If that's the case and the low rate is your primary concern, then if you can't close the current loan, that rate is gone for now. Investors often give a window of time before they will apply underwriting changes to loans in process. You should definitely put up a fight about this. You have everything to lose.
I presume you are certain you were originally approved?
Good luck...
Best regards....
- Clay Branch, "Georgia Loans"
- Contributions:8817
Is it a 30 Year Fixed loan?
- Andrew Adams, "RenovationSpecialist"
- Contributions:9404
I would be on the phone with them asking them how exactly they expect you to meet that condition? I am guessing your debt ratio did not change between application and the approval...If that's what you call that!
Unfortunately you are in a big Jam because not being able to meet that condition will result in the loan being declined for Debt to Income Ratio.
Unfortunately you are in a big Jam because not being able to meet that condition will result in the loan being declined for Debt to Income Ratio.
- Nothappy
- Contributions:4
Mortgage Broker
- Andrew Adams, "RenovationSpecialist"
- Contributions:9404
- Andrew Adams, "RenovationSpecialist"
- Contributions:9404
That's a big problem and may be a result of needing MI. Getting MI with a debt ratio above 45 is not easy!
- Nothappy
- Contributions:4
I was approved and we were due to close the end of May, then advised it would take a few more days...The change was sent to our broker on May 27th. My Debt to Income ratio is 48...they put in their special provision not to accept above 45.
- Andrew Adams, "RenovationSpecialist"
- Contributions:9404
If the special provision is a condition, and you cannot meet the condition your loan will be declined. What is the special provision?
- Marcelo Hernandez, "pacific mortgage srv"
- Contributions:180
I suggest you speak to your rep. and request a waiver of the provision/condition to your approval. Without knowing this condition they've stipulated it's hard for anyone of us to inform you the likelihood of this waiver. good luck.
- C L Kennedy, "Entasia"
- Contributions:95
Have no clue what you are referring to. Share details so people here can assist you.
Loan locked at 4.875 expires on 6/16.Lender issued special provision that we do not meet. Options???
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