What Bad Credit Mortgage Options Are Available? Posted By : Joseph Kenny
Aug 05, 2008 in Mortgage
What Bad Credit Mortgage Options Are Available? Posted By : Joseph Kenny
These days, with all the easy to get credit available everywhere you go, and even dropping through your letterbox every day, it’s no wonder that a lot of people find themselves with credit problems.
Liar, Liar, Pants On Fire Posted By : Dale Rogers
It starts out all so innocently, the loan application (1003) is filled out while gathering the income and debts verified through credit reports and mortgage payoffs. Then the Debt To Income Ratio (DTI) is calculated dividing the debts including the new housing expense by the income and wham, it happens. The DTI is over 60%. Conventional loan guidelines historically have been around 28% for housing expenses including taxes, insurance, private mortgage insurance and homeowner maintenance fees. The total debt ratios had been around 36% for all monthly debts including the housing expense. With computer modeling and automatic approvals some DTI are allowed to float up in some cases to 50% to 60% if the borrower has lots of assets and the loan is on a full doc basis. As time passed, more and more hybrids began to show up. Mortgage Brokers were inundated with this new loan product called Stated Income. Simply the borrower would state their income on page two of the 1003 loan application and r