Wanting to purchasing a Duplex/Good FICO/Debt to Ratio to High.

2 Replies

Hi, I'm needing some advice, So my FICO is 715, as I just wanted to see where I stood. I'm wanting to buy a duplex and live in one. However, my mortgage lender says, everything looked good but my car payment, it is making my debt to ratio to high. Tired of apartment life and its just my time to start investing. I'm sure someone on this discussion has had a set back and I am asking what can I do. I do not want a co signer, (for many reasons) even though it was a suggestion from the mortgage lender. A little frustrated, as I have been working on getting my FICO up and still another set back. So any suggestions of how to get myself in a position to get a duplex? (Any type of programs available?) Looking in the Kent WA area. Any advice given, I would appreciate and I thank you in advance.

I was in a similar situation a few years ago. I was within 1% of qualifying and my car payment put me over. Ended up paying my car off (2k left). Then I was able do a conventional loan for 5% down. Unfortunately they don't leave a ton of wiggle room for high DTI. FHA is a little more lenient and I believe at 43%. If you are above that I would say you need to somehow start reducing your monthly bills. Credit cards, student loans, medical bills, etc. Start paying those down to help lower your dti. It took me about 2 years to get my finances in check so I could potentially qualify for a loan. Once you get your DTI down you should have no problem qualifying.

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