mortgage w/ high debt/income ratio?

Discussion in 'Credit Talk' started by donk, Aug 25, 2003.

  1. donk

    donk Member

    Anyone know of a lender who can do a loan in Iowa with a high debt/income ratio? My situation: credit score of about 650, current debt/income ratio is 35%, which does not include housing. No bankruptcies, late payments or derrogatories - low score due to high usage (which is now under control). Also, would like to do 100% financing if possible. Would like to buy instead of rent - is all of this possible?

    I found first franklin, which will go up to 55% debt/income, but I've seen some negative remarks about them on this forum. I realize if I can get such a loan, the rate won't be great, but I figure it's still better than renting, especially with the crappy rental choices where I live.

    Any input?
  2. cguin

    cguin Member

    Don't know if they would help you in Iowa or not, but Fifth Third Bank ( just refinanced my first mortgage for 4.75% at 15 years. I am in Northern Kentucky, and my credit info is a little worse than what you described. Worth a try!

    Good luck!
  3. donk

    donk Member

    Do you have a high debt/income ratio, too, or just a bad score?
  4. mbelden

    mbelden Member

    Any chance you could go FHA? The max. loan you could get in Iowa is $154,896. You only need 3% of your loan and this money can all be a gift, leaving you with $0 out of pocket. You can ask the seller to pay this money. When we sold our house 2 years ago the buyer went FHA and we paid her 3%.

    FHA looks more at your credit history than a credit score. They allow a 42% debt-to-income ratio.

    Here is a site with FHA details
  5. willtygart

    willtygart Well-Known Member

    There are plenty of lenders that will go to 55% DTI. My suggestion is find a good local broker in your area and he/she will find the lender for you at a better rate then if you went to the lenders retail site. Good Luck!
  6. cguin

    cguin Member

    I think my ratio was a tad under 40%, and scores were 689, 603, and 618.

Share This Page