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neg_am630
108 Posts |
 Posted - 06/03/2008 : 09:36:41 AM
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What is the highest debt ratio's you guys have seen go through for a manual. I have a file 35/53 debt ratio's, 0x30 in the last 12 months, maybe $2,400 in reserves, 95ltv rate and term. 608 credit.
They had a couple lates on credit cards and caught up.
Am i wasting my time? I know my ratio's are not in line. I have done so many lox's and tried running files through manual and not much luck. |
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crloan999
74 Posts |
Posted - 06/03/2008 : 12:21:37 PM
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| yes you are wasting your time FHA is very strict on the 43 back ratio so unless it does not run through automated you are not going to get a manual underwrite. |
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EquitySmart
1240 Posts |
Posted - 06/03/2008 : 12:29:13 PM
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| You can definitely get loans with high debt ratios approved through an FHA lender with strong manual underwriting ... IF the borrower has other strong positive (compensating) factors. We got a loan approved with 62% debt ratio, but the borrower had reserves, good credit score and payment history, we were lowering his mortgage payment by more than $300 per month = reduction of more than 20%, and he was getting paid cash for a second job (which could not be used since it was cash income and he had only been getting paid for 8 months). You should never give up on a file only because debt ratios exceed 43% unless there are no strong compensating factors (or debt ratios are ridiculous) |
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RGK2394
1224 Posts |
Posted - 06/03/2008 : 12:30:43 PM
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quote:
Originally posted by EquitySmart
You can definitely get loans with high debt ratios approved through an FHA lender with strong manual underwriting ... IF the borrower has other strong positive (compensating factors). We got a loan approved with 62% debt ratio, but the borrower had reserves, good credit score and payment history, we were lowering his mortgage payment by more than $300 per month = reduction of more than 20%, and he was getting paid cash for a second job (which could not be used since it was cash income and he had only been getting the income for 8 months). You should never give up on a file if debt ratios exceed 43% unless there are no strong compensating factors (or debt ratios are ridiculous)
Boo ya- I have a file that meets the above mentioned criteria to a "T"----where'd you take that file???????? |
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EquitySmart
1240 Posts |
Posted - 06/03/2008 : 12:32:17 PM
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quote:
Originally posted by RGK2394
Boo ya- I have a file that meets the above mentioned criteria to a "T"----where'd you take that file????????
This file was approved by Chase, but similar files have been approved by TBW |
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dkendall1979
10261 Posts |
Posted - 06/03/2008 : 12:34:29 PM
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I've gotten manual underwrites to go through with 60% or more DTI on FHA files.
48 hour underwriting on refinance loans. |
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neg_am630
108 Posts |
Posted - 06/03/2008 : 1:11:07 PM
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| Thank for the info, I think i'm going to try tbw. I ran through there system and got a refer. I don't have that many compensating factors their only saving about $50 a month, but going from arm to fixed. |
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EquitySmart
1240 Posts |
Posted - 06/03/2008 : 1:13:34 PM
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| That is 2 decent compensating factors ... having reserves would help A LOT ... |
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crloan999
74 Posts |
Posted - 06/03/2008 : 1:32:39 PM
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| And this is why FHA will adjust their guidelines tomake it harder for those who don't buck the system and do bad loans. |
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HollywoodLO
261 Posts |
Posted - 06/03/2008 : 1:41:31 PM
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| I had a manual FHA go through with 57% back end last month. |
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EquitySmart
1240 Posts |
Posted - 06/03/2008 : 1:41:35 PM
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| crloan999 - define "bad" loans ... lowering the borrowers payment by $50 per month and going from ARM to FHA fixed (which can be easily streamlined in the future if rates get better) does not seem like a "bad" loan ... assuming the breakeven period for repaying closing costs on this loan is reasonable... We don't know the full story here... |
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