I am currently awaiting my new home construction to be ready and I have about 2 months or less before it is ready. I was doing some research recently and came across the FHA DTI limits which have me somewhat worried.
1. I understand the DTI limits are 31%/43%, but my actual interest rate may determine if I can meet the 31%. By doing what I assume would be "worst case" for my interest rate, my front end DTI comes in just under 33% which of course is higher than the 31%. My lender has not brought this up as an issue so I am hoping there is somewhat some way around this? I am working on getting my mortgage mid score above 640 which would alleviate some stress regarding interest rates. Currently it is 619 as of today.
2. I am currently in a Ch13 BK case and have put the motion to purchase a home. What I am curious to know is if the lender will calculate my Ch13 monthly plan into my backend ratio or if the student loans ($51k which are deferred by the plan) going to be factored in? As of right now, the student loan payment (assuming 1% of the 51k balance = $510/mo) would be the higher of the two. This will leave me under 42%, but I hope they do not factor both the ch13 plan AND the student loan deferred loans.
Any help is appreciated.
