anyone here got approved with DTI ratio > 90%?

[cycle87]

Hi all,

My current situation is very bad, since I got laid off my current DTI (debt to income) ratio is almost 100%.
I'm wondering if there is anyone here who got his/her loan modified with DTI ratio like mine through NACA or BofA.

Thanks for any input.

[wattsm]

mine is about 80% (and both my wife and I work). I figured in order to get our numbers down to the affordable payment that NACA suggested, they'd have to give us about a .5% interest rate. Since that's obviously not going to happen, we're hoping for 2%, which is still more than the MHA guideline of a payment that is 31% of our monthly income. The big question in my case (and probably yours as well) is that if there is no possible way that BofA can offer anything that falls into the guidelines of the various programs, will they still offer something even though they have documents showing that we still can't afford the new payment?

[Evan Bedard]

Hi cycle87,

Since you were laid off do you have any source of income coming in at this time?

[cycle87]

Hi Evan,

After losing my regular job, I'm making small money from my part time job, which made my DTI ratio is almost 100% (my wife doesn't have job).

wattsm,
Yeah, I'm wondering too if BofA will let us have our loan restructured.
That's why I posted here to see if anyone had such a luck.

NACA told me that BofA is likely to deny my case even for 2%, instead they may offer forbearance. I just wanted to double check on this forum if that is true.

Also there is a rumor that the maxium DTI ratio for BoaA to consider for loan mod. is 55%, I'm not sure this either.

Did you apply for loan mod through NACA? what is your status now?

Thanks

[ama125]

Have you read up on the Making Home Affordable Modification Program (HAMP)? I believe what you are saying about BofA and a high DTI is accurate, but only as it pertains to their in-house mods.

As for the HAMP, your payment would be reduced to 31% of your gross monthly income. The front end of the equation only calculates payment based on PITIA (principal, interest, taxes, insurance, and association fees if applicable). The back end of the equation also factors in expenses and overall indebtedness. If your back end DTI is equal to or greater than 55% DTI, then under the HAMP you would be required to undergo loan counseling through a HUD office.

Also, note that the servicer may go below 31% of gross monthly income and may also dip below a 2% interest rate or eliminate any step up in that rate BUT may only do so at the servicer's discretion and with the investor's approval. So, you may qualify for a HAMP mod but there are a lot of things that would have to be okayed for it to happen.

I'm in the same boat as you as far as having a high DTI. The HAMP may be my only hope unless I went through NACA and they worked out some kind of miracle. I am just trying to hang on and actually NOT trying to speed things up as I hope the program will improve and the pendulum will swing in my favor

[cycle87]

ama125,

when DTI is high, according to the HAMP guidelines,
The the first thing BofA is supposed to do is to apply 2% rate to see if this brings the mortgage down to 31%,
if that doesn't work,
then they can extend to 40 years,
the last thing they can try is pricipal forbearance (balloon payment)

But the problem is that if your DTI is way high like 100%,
what I feel is that BofA won't even try to help you.

[ama125]

Originally Posted by cycle87

ama125,

when DTI is high, according to the HAMP guidelines,
The the first thing BofA is supposed to do is to apply 2% rate to see if this brings the mortgage down to 31%,
if that doesn't work,
then they can extend to 40 years,
the last thing they can try is pricipal forbearance (balloon payment)

But the problem is that if your DTI is way high like 100%,
what I feel is that BofA won't even try to help you.

I haven't seen anything in the HAMP guidelines that says there is a limit on how high one's DTI can be. As for BofA trying to help...doesn't seem they are helping that many people period, high DTI or not!

[hope67]

According to the guidelines, anyone who qualifies for a modification plan but has a 55% or higher post-modification Back-end DTI would be required to agree to obtain a Hud-approved conselor.

http://www.treas.gov/press/releases/...guidelines.pdf