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Home Ready program

Saved cash from family members (gifts) from graduation in 2017. Using the $9,400 for a down payment. Looking for a Home ready loan program for 1st time. My FICO is 640, DTI 40/60, income $45,088/year by parksh514 from Cincinnati, Ohio. May 31st 2019 Reply


Kitsy Burt (Kitsy Burt)
#7 ranked lender in Ohio - 72 contributions

Good Afternoon, are you using your gross or net for the DTI? With 60%, I really would need to have a more complete application to see if we can get an exception. My website is www.ohiocapitalmortgage.com and you can complete a short application or please feel free to call me, 614-436-0455 or email, kitsy@ohiocapitalmortgage.com. I have been in this business for over 40 years and we do not have any upfront fees. I am looking forward to working with you, Sincerely, Kitsy Burt, NMLS#230669

May 31st 2019
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Dan Paladin (dpaladin)
#1 ranked lender in California - 587 contributions

More info would be needed regarding debt to income but in general that DTI is to high. 50% has been known to get approved...though not over that. As indicated..is the income you are using gross or net? If Gross are the debts that you can pay off? These are just a couple questions could help. Good luck!!

May 31st 2019
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,944 contributions

Congratulations on wanting to buy a home, and having some down payment money. Just contact a local mortgage lender. Don't call a big bank, and stay away from the gigantic internet lender (especially the "quick" one).

Jun 2nd 2019
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

More info needed, but in general.. with a 640 credit score, you might be better off with FHA.. With this program, there's not a huge difference in interest rates comparing a 640 borrower to a 740 borrower.. and when it comes to monthly mortgage insurance, the rate is the same.. it's not based on your credit score.. With Home Ready.. both the interest rate and the MI rates are based on your credit score.. Also, we would need to look at your monthly debt ratio's.. Your questions suggests that you are 40/60... in our world, what you're saying is that your housing payment is 40% of your income and your overall debt to income ratio is 60%.. There are no loan products out there with those ratios.. so, my guess is you are not calculating it correctly.. People get confused when we talk about DTI.. But in general, we don't look at how much you owe.. we look at how much you pay MONTHLY.. and we only look at those obligations that show on the credit report.. so, credit card payments, car loans, student loans, etc.. But also, if you have child support obligations, Alimony, IRS tax payments, etc.. those are added to your new housing payment and divided against your monthly income.. this is a generalization, and there are many factors that need to be considered in order to be accurate.. and without looking at your complete loan profile, no one here can advice you.. For this reason, you should contact a mortgage banker/broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with a Banker/Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the banker/broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the big box banks. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Jun 3rd 2019
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