I have a potential barrower with a 600 mid fico and 58 perce

daveklein · Joined: 03 Mar 2008 Posts: 1 1.36 Dollars($)

I have a potential barrower with a 600 mid fico and 58 percent dti he wants to do a rate and term refi to 95% can you do it?

Jeanette · Posted: Mon Mar 03, 2008 5:12 pm Post subject:

Depends on the lender. You will need a loan officer to look around to find that lender who can offer you a loan with such a high dti and ltv. How is is the borrower payment history? If no judgements or collections and great payment history you can probably get him FHA,.

Jean
Loan Officer/ Representative

chrisburns · Posted: Mon Mar 03, 2008 6:29 pm Post subject:

FHA won't do a loan with DTI above 50%.

Have you run through Desktop underwriter and LP yet?

Caron · Posted: Tue Mar 04, 2008 3:26 am Post subject: RE: loan with 600 midfico score

Hi Daveklein,

Welcome to our forums.

95% LTV is quite a good amount of loan. You'll have to talk to lenders and find out if they are willing to offer it. FHA approved lenders offer upto 97% financing but the borrower's dti is quite high. Such lenders actually offer loans to those having 41% dti.

You can ask the borrower to also seek no-obligation free counseling from ranked lenders in our community. The lenders are into offering various mortgage programs to borrowers having different income and payment history. So, hopefully they can help him choose the right loan and he can then request our community lenders for free mortgage quotes.

Good luck

gmakerley · Posted: Tue Mar 04, 2008 12:50 pm Post subject:

i am in agreement with the prevailing opinion that this borrower's ratios are simply too high to allow for an approval. fha is, indeed, an excellent source to tap into, but as pointed out, their ratio tolerance is a great deal lower than 58%.

Jeanette · Posted: Tue Mar 04, 2008 3:34 pm Post subject:

Absolutely, FHA requires a lower DTI, I misstated that point. If you have more income then that would definately bring your DTI down from 58%.

Jean
Loan Officer

Guest 0.10 Dollars($)

That's fine jeanette. But what loan options are there for the poster then? Is 95% refinance still possible?

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