| Re: Question for Poppy!!!
The product is FHASecure - and you are correct CLTV will not matter as long as the first being retired is an Adjustable rate current at the time prior to adjustment for the prior 6 months (underwriters are real anal and may want 12 months) does not matter when adjusts. Must have not greater than 97% or there abouts LTV on the First - no cash out except closing costs, prepaids and any delinquent payments since the adjustment. This program was designed to get people out of the cluster %&#* loans.
Second must agree to subordinate - why not your first position is a better position for them to get repaid.
The DTI will have to be mitigated and compensated by factors designated by FHA - ability to make payments that were higher before with performance 0x30 24 mos on prior higher mortgage payment, job stability, income not used for qualifying but proven to exist..... can not push DTI over 47% in my opinion, but with the right compelling compensating factors I have gone to 49%. Sorry anal underwriter. Want to see that consumer credit is rated better - pays as agreed no more than 2X30 prior 12 months documented extenuating circumstances or really strong letter of why I goofed. Even then encapsulated consumer lates with strong and compelling extenuating circumstances and reason why won't happen again - i.e. solved problem can fly. Value must support 97% LTV for the 1st. Now your lender may not be able to offer the program, some do not have access to it let alone understand it. Tell him/her that you want and FHASecure - if not offered find a Direct Lender to get it from...do not go to a BROKER. Go to a Banker - Mortgage Banker, please. |