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10 ways to murder your loan
Here are some great tips on how to avoid some of the many pitfalls that can arise during a home purchase. Some typical maximum key debt to income ratio guidelines to keep in mind are:
41% - Conventional with MI (may have first time home buyer restriction) 45% - Conventional without MI - 20%+ down - (up to 50% strong compensating factors and DU approval) 45% - FHA (up to 50-55% with strong compensating factors and DU approval) 45% - VA (up to 50-55% with strong compensating factors and DU approval) 45% - USDA Individual loans may have stricter requirements than those listed above as each loan is evaluated on a variety of characteristics.
Here's a handy list of 10 things you can do to kill your chances of getting a loan today.
1. The house just needs too much work.This applies to REO's, foreclosures, and short sales... sure they're good deal, but the financing can be rough. Any broken windows, bad appliances, leaking roof, water damage, obvious mold, health or safety issues, structural problems and of course any liens.
2. Low AppraisalAppraisal used to be a "rubber stamp"... those days are long gone and best forgotten. Today, appraisers are trying ... more
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