N
NewportSkipper_IHB
Guest
[quote author="trrenter" date=1251940582]<blockquote>"there are many cases where a 38 DTI just can?t be done"
Let me fix this for you: there are no cases where a 38 DTI can?t be done.</blockquote>
How can a 38% Back end DTI always be done? Is the "home debter allowed to default on all of their other loans.... This is clearly stated on Page 4 under Back end DTI I wish I could cut and paste but it is a PDF. If someone did an 80/20 finance the 20% still exists and counts toward the 38% back end and so do all of their other credit payments or installment debts, like car payments.
Bringing the Front End to 31% does not and cannot guarantee that the back end will be 38%.
Are you implying that if before my mortgage the rest of my installment debts are 32% of my income then they will reduce my mortgage payment to 6% of my income.
Then there is that pesky recession we are going through. We have massive unemployment, under employment and people that have taken reductions in salary.
That may hurt as well.</blockquote>
They don't care about the back end ratio as long as it's not over 100%. I swear.
"Treasury will partner with financial institutions to reduce homeowners? monthly mortgage payments. The lender will have to first reduce payments on mortgages to no greater than 38% Front-End Debt-to-Income (DTI) ratio. Treasury will match further reductions in monthly payments dollar-for-dollar with the lender/investor, down to a 31% Front-End DTI ratio for the borrower."
"Borrowers who otherwise qualify for a modification under this program, but who would have a post-modification Back-End DTI greater than or equal to 55%, will be provided with a letter stating that they are required to work with a HUD-approved counselor and the modification will not take effect until they provide a signed statement indicating that they will obtain counseling."
They have to sign a form saying they will get counseling.
Let me fix this for you: there are no cases where a 38 DTI can?t be done.</blockquote>
How can a 38% Back end DTI always be done? Is the "home debter allowed to default on all of their other loans.... This is clearly stated on Page 4 under Back end DTI I wish I could cut and paste but it is a PDF. If someone did an 80/20 finance the 20% still exists and counts toward the 38% back end and so do all of their other credit payments or installment debts, like car payments.
Bringing the Front End to 31% does not and cannot guarantee that the back end will be 38%.
Are you implying that if before my mortgage the rest of my installment debts are 32% of my income then they will reduce my mortgage payment to 6% of my income.
Then there is that pesky recession we are going through. We have massive unemployment, under employment and people that have taken reductions in salary.
That may hurt as well.</blockquote>
They don't care about the back end ratio as long as it's not over 100%. I swear.
"Treasury will partner with financial institutions to reduce homeowners? monthly mortgage payments. The lender will have to first reduce payments on mortgages to no greater than 38% Front-End Debt-to-Income (DTI) ratio. Treasury will match further reductions in monthly payments dollar-for-dollar with the lender/investor, down to a 31% Front-End DTI ratio for the borrower."
"Borrowers who otherwise qualify for a modification under this program, but who would have a post-modification Back-End DTI greater than or equal to 55%, will be provided with a letter stating that they are required to work with a HUD-approved counselor and the modification will not take effect until they provide a signed statement indicating that they will obtain counseling."
They have to sign a form saying they will get counseling.