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mikewilliams818 · Joined: 01 Sep 2010 Posts: 3 2.15 Dollars($)

Hello everyone, this is my first post. I have been a lurker for a long time. You are all very knowledgeable and I am glad to have this as a resource.

My question/concerns

I am looking to get approved for an FHA loan. I have a broker I am working with and was wondering what you thought of all this...

I do not earn very much, I made 15k in 2007, 14.5k in 2008, and only 3k in 2009. 2009 I spent all year traveling, thats why. Right now, I have 8 weeks of proven pay stubs showing I make 1100 gross a month.

I have a FICO of 768, which has held that number for 3 years. I have ZERO LOANS, NO SCHOOL AND NO CAR. I have 2 credit cards, minimums are 20 bucks a month each. Therefore my DTI is ~4%. I also have 7k to put down per my bank statements. In another month, I will have 8 or 9k.

It is my goal to get approved to the amount of 100k. I would settle for probably 80k though. On a 100K note for 30 years at 4.5% (what my broker said I could get) with 0.5%PMI and 1.25% tax we are looking at 678 a month which is close to 60% DTI.

My questions:

1. Is this the best loan for me, or should I try USDA? (USDA is in some of my area.)
2. I have money invested in a business I could possibly show as monthly income, not sure how to do this though. It is a couple hundred, which could help me get to 100k.
3. Should I skip all that and have my parents cosign for me? They have good credit but their DTI may be a bit high...

Thoughts?

mikewilliams818 · Joined: 01 Sep 2010 Posts: 3 2.15 Dollars($)

I had one other idea too. FHA loans require 30 days of pay stubs. I can get a raise from my boss where I am at (7.50 hr to 10 hr) effectively increasing my monthly stated income from 1100 to 1500 gross, thus lowering my DTI even more.

dipaligopale · Joined: 25 May 2010 Posts: 790 22.70 Dollars($)

Hi mikewilliams818,

If you are planning for 30 yrs loan term,it is always advised to have someone cosign the mortgage as well as deed.It would be wise decision to have your wife to cosign the mortgage.

If someone is cosigning with you then you can go ahead for 100 K with 30 yrs term and @ interest rate told by you.

But if you wish to go on your own then you should consider going for 80K.

You can also use our calculator to analyze how much mortgage you can afford.
http://www.mortgagefit.com/calculators/howmuch-afford.html

DIPA

Posted: Wed Sep 01, 2010 9:53 pm Post subject:

So what is your reasoning with a cosigner @100k but not with 80k?
The DTI is just barely too high?

Oh, and Im single BTW Smile

Posted: Wed Sep 01, 2010 9:54 pm Post subject:

This post and the last are me, the original poster. Thought I was still signed in..

smithsussane · Posted: Wed Sep 01, 2010 9:59 pm Post subject:

Hi mikewilliams!

Welcome to forums!

You can contact the local USDA and FHA lenders and check out what type of rates and terms you may get from them. This will help you in deciding the best affordable option. You should compare the rates and terms that you're getting from them and decide which one would be suitable for you.

Feel free to ask if you've further queries.

Sussane

Guest

IT APPEARS USDA MAX DTI IS 41% WHEREAS FHA CAN BE 53% OR SO...

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