and without PMI - debt to income ratio 50%
2007-01-07 22:52:36 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Let's tackle your question in two parts:
1. Getting approved for a mortgage with 5-10% down with a 50% DTI should not be a problem IF your credit is good AND you have steady income and work history. Fannie Mae underwriting guidelines will actually allow up to 60% DTI's for the right borrowers (not that I'd ever recommend going that high).
2. Regarding not paying PMI, you have a couple of options:
a. get a piggyback loan, whereby the second loan takes the place of the PMI.
b. see if the lender has any "lender paid PMI" loans. FYI - Rate will be higher.
It's usually better to go with option "A" because the combo of the 1st and 2nd loan should be lower than going with option "B."
That said, do not immediately discredit PMI as an option. Legislation was just past which makes PMI tax deductible (consult your accountant), and as well, once you have 20% equity you can cancel the PMI.
2007-01-08 02:56:55 · answer #1 · answered by Anonymous · 1⤊ 0⤋
putting 5-10% down I believe you might be able to get a piggy back loan to prevent the PMI, but your debt to income ratio is the tough part. If they can do it, your interest rate will most likely be high. Your best bet is to talk to a mortgage loan officer. If you are working with a real estate agent, ask them for 2 or three loan officers they would recommend, if not, you can check with your bank or reputable lending institutions like GMAC or Countrywide.
2007-01-08 09:15:27 · answer #2 · answered by c21bucks 2 · 0⤊ 0⤋
You have listed an impossible situation. Every lender has its rules and are strict about them. No lender will give more than 80% of the appraised value without the insurance to back up the loan in case of default on your part (PMI). Your debt ratio is too high.
You would be considered high risk on your debt ratio alone, try to get those bills cut down.
If you don't believe me, call the local banks and credit unions.
2007-01-08 07:21:33 · answer #3 · answered by Barbara 5 · 1⤊ 1⤋
Most lenders like to see no more than 25-33 1/3% of your total monthly income allowed for a mortgage payment.
2007-01-08 07:01:24 · answer #4 · answered by Flyby 6 · 0⤊ 0⤋
Take an alternate/portfolio product that will allow up to 50% dti. Obviously, the terms will be less desirable. You'll probably get the option of Lender paid MI, with a higher rate... or, break it up into a first and 2nd.
2007-01-08 11:30:36 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Piggyback is the way with the Heloc to cover the remaining balance. 516 535 5800 ext 239 Mortgage consultant.
2007-01-08 14:22:44 · answer #6 · answered by Jeff 1 · 0⤊ 0⤋
That is a bit of a tall order but the following site has a few lending programs that may fit your needs. The quote request is free so you can see where you stand with a few minutes of your time. Good Luck.
2007-01-08 07:58:19 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Just apply. Your loan officer will tell you what programs you qualify for.
If you don't apply, you can't get approved.
2007-01-08 18:00:24 · answer #8 · answered by Anonymous · 0⤊ 0⤋
i dont know but am trying to earn points
2007-01-08 07:08:42 · answer #9 · answered by lisa_eli_92252 2 · 1⤊ 2⤋