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Originally posted by 90degree
joe needs to open at least 2 more accounts.
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Of what sort? Joe has many accounts, maybe. I only mentioned the ones which seemed relevant.
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Joe needs to have DTI (debt to income ratio) .. not to exceed 45-47% of his income (for the best rates) .. it can be as high as 55% for subprime rates. This is a calculation of both the proposed payment of the new Mortgage.. combined with any back end monthly debt payments.. (credit card, car, furniture loans.. etc)
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So that means that the mortgage payment, including any mortgage insurance, must be under 47% of his income?
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if i had my financial calc with me tonight i would work u up an actual amount joe could qualify for with the info you have given me.. of course there would me some questions I would need to ask actually....such as how long renting at current residence, would the income be derived from W2'd job or self employment... etc..
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Assume 5 years at current location and no self-employment income (all W-2) with no significant 1099 income,.
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Joe could get himself a 100% financing and walk away with a pad for about 1500 or so out of pocket most likely..
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That strikes me as quite a lot, actually.