Why is it so difficult for higher income individuals to get a mortgage loan, who only lack the traditional 20% down payment???
My wife are I are building a home on land that we have owned for two years. Land appraised at $62,000, and current balance on loan is $45,000. We have a gross monthly income of right at $12,000. Our FICO scores are in the mid 700's, and our current debt to income ratio is around 25%. Budgeted cost to build is $310,000. Even after the build, our debt to income ratio will be less than 35%.
We could manage 3-5% down, but nothing more than that unless we tapped into accounts set aside for retirement, which we do not want to do. So literally the down payment is the only issue preventing us from moving forward.
Does anyone know of any programs or financing companies that would be a good fit? We are not military and due to our income, we wouldn't qualify for a VA loan or a USDA loan. It would appear that an FHA loan is our only option, but are there lenders out there that provide an FHA Construction to Permanent program?
