FHA Mortgage Underwriting Process?
My fiance and I recently went into the FHA underwriting process and am just wondering if I will be final approved. We have a combined gross income of about $90,000 but total debt monthly payments of $1,549. We have a total loan for $240,000 but we are buying from her relative as a gift and the house is worth $370,000 leaving us $130k in equity. Does the underwriter look at how much equity is in the home for approval or is it the DTI ratio that the underwriter is mostly focused on. Thanks for any help.
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Underwriting a mortgage is a layered risk assessment so the u/w looks at several different things.
1) Credit score and payment history
2) Debt to income ratio
3) Assets/reserves
4) Loan to value
If you're weak in one area but strong in others, that will usually offset the weak area. In this case having that much equity should get you over the hump unless your debt to income ratio is really high (55%+)
uncertain if that's sufficient information, yet i latterly went for the time of the FHA very own loan technique some months in the past. the technique is frequently the underwriters looking over your credit historic past, debt/earnings ratio and your skill to pay off a private loan. they are especially lots picking once you're waiting to pay off a private loan, based off your credit/employment historic past. i don't have the specifics of your question, yet hopefully this could help.