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?
Don't know if they would help you in Iowa or not, but Fifth Third Bank (www.53.com) 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!
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 http://www.fhalibrary.com/
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!