Zillow Advice: Approval Process - H http://www.zillow.com/advice-thread/H/507709/ Zillow Advice | Zillow Real Estate I disagree with the poster ... http://www.zillow.com/advice-thread/H/507709/ I disagree with the poster who claims to be able to use lease income on current home. Unless you are an investor&nbsp; who has rentals on your taxes that&nbsp; solution is not viable. <br/>If your FICO scores are above 721 you can get a DU or LP approval with 24 months reserves- the secret is in the cash reserves. 401k and stocks are only used at 60% &nbsp;I have gotten approval with 50%. You are only $550 away from the 45% number-<br/>reduce fire policies with $5000 deductables (skinny off $100) then increase after closing. Pay $40000 more down and should reduce payment $455-- get a gift of $10000 from family DON't borrow or withdrawal 401k--there is your 45%<br/><br/>Don't buy the rate down-that won't penny out - look at a 5 year loan where the&nbsp; lender uses the start rate to qualify - Do a 5 year or 3 year loan with lowest NO Points rate. When you sell your current home, refinance to 30 year<br/>OR apply with a lender who is NOT a bank and can be creative Mon, 26 Aug 2013 20:21:00 GMT http://www.zillow.com/advice-thread/H/507709/ 2013-08-26T20:21:00Z The load was approved. Thanks ... http://www.zillow.com/advice-thread/H/507709/ The load was approved. Thanks you for your advices.<br/><br/>My lender was very strict about 45% rule. We have to increase down payment to keep dti under 45%. We didn't try the lease option. My lender didn't think we qualify for it. Fri, 20 Sep 2013 21:10:00 GMT http://www.zillow.com/advice-thread/H/507709/ 2013-09-20T21:10:00Z The answer is obtaining an ... http://www.zillow.com/advice-thread/H/507709/ The answer is obtaining an automated underwriting approval - DU or LP - and that will tell you whether 48.7% is possible.&nbsp; I recently had a loan DU approved with that ratio. Automated underwriting would also determine the amount of reserves but that does not appear to be an issue. I only do loans in TX so if you want to pursue approval process contact me thru my Profile. Mon, 26 Aug 2013 21:21:00 GMT http://www.zillow.com/advice-thread/H/507709/ 2013-08-26T21:21:00Z It looks like you have a ... http://www.zillow.com/advice-thread/H/507709/ It looks like you have a Realtor,&nbsp;I can not give you any advise.&nbsp;&nbsp; Mon, 26 Aug 2013 20:00:00 GMT http://www.zillow.com/advice-thread/H/507709/ 2013-08-26T20:00:00Z It sounds like you have a ... http://www.zillow.com/advice-thread/H/507709/ It sounds like you have a great property and if you're serious about renting it out, a very good option, I was suggest throwing some feelers out there on craigslist list. &nbsp;You'd be surprised as to how quickly you can rent out a place in the current market. &nbsp;I've had many clients rent out their existing homes, because they wanted to keep the investment, and they've had no problem finding a renter. &nbsp;As for going with Freddie vs. Fannie, you might take a hit on the pricing/interest rate of your new loan due to the higher debt to income ratio. &nbsp;If this does not concern you then it's a valid option. &nbsp; Wed, 21 Aug 2013 03:36:00 GMT http://www.zillow.com/advice-thread/H/507709/ 2013-08-21T03:36:00Z There are 2 ways to get a ... http://www.zillow.com/advice-thread/H/507709/ <div class="msg 1st">There are 2 ways to get a conventional mortgage. The first is Fannie Mae and they are very strict to the 45%. The other is Freddie Mac and I have been able to get loans approved upto a 50% Debt to Income Ratio. With Freddie Mac if there are other factors involved to offset the higher DTI you should be able to get approved. We have lenders that would do both.</div> Tue, 20 Aug 2013 17:32:00 GMT http://www.zillow.com/advice-thread/H/507709/ 2013-08-20T17:32:00Z We don't have an&nbsp;appraisal&nbsp;yet. ... http://www.zillow.com/advice-thread/H/507709/ We don't have an&nbsp;appraisal&nbsp;yet. But based on our realtor estimate, it should be in lower 500,000, the current load on it is about 330,000.<br/><br/>We thought about renting, but the timing is the issue. The 2nd house needs to be closed next month. I don't know how realistic to rent it out within such a short time.<br/><br/>Sorry about the confusing title, Zillow won't allow me to edit any more. Tue, 20 Aug 2013 15:21:00 GMT http://www.zillow.com/advice-thread/H/507709/ 2013-08-20T15:21:00Z You mentioned that you have ... http://www.zillow.com/advice-thread/H/507709/ You mentioned that you have about $200,000 in equity on your current residence. &nbsp;What is the estimated value of this property? &nbsp;If we can get an appraisal that gives us at minimum 25% available equity we can provide a lease agreement and exclude the payment from your debt to income ratio on the current residence. &nbsp;Have you considered keeping the property as an investment? &nbsp;The rental market is very strong right now and home prices are rising again. &nbsp;It could be a great investment for you. &nbsp; Tue, 20 Aug 2013 05:06:00 GMT http://www.zillow.com/advice-thread/H/507709/ 2013-08-20T05:06:00Z Have you considered having ... http://www.zillow.com/advice-thread/H/507709/ Have you considered having the first home on the market and sold before buying and moving to a second home?<br/><br/> Tue, 20 Aug 2013 04:21:00 GMT http://www.zillow.com/advice-thread/H/507709/ 2013-08-20T04:21:00Z