Timeline for How does DTI work while building a house?
Current License: CC BY-SA 4.0
8 events
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| Jul 5, 2018 at 5:09 | history | edited | Brythan | CC BY-SA 4.0 |
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| Dec 30, 2016 at 15:34 | vote | accept | Nicholas | ||
| Jul 14, 2015 at 14:05 | comment | added | Nicholas | @Joe That's a good suggestion. However, in our case we have about 25% equity in our house and are being forced to move. We'd really like to just 'trade' into a similar house where we have 25% equity. Sometimes whether we move is not necessarily up to us, and it can often be a lateral move so it's not even necessarily fiscally irresponsible. | |
| Jul 13, 2015 at 23:14 | comment | added | Joe | You're also not considering an obvious choice I suspect: assuming most of the first house is paid off, or even some decent chunk, refi for a smaller payment. Take points to pay off the cost of the refi (since you're looking for less than a year). | |
| Jul 13, 2015 at 23:12 | comment | added | Joe | Sounds like a reasonable home for that individual to me | |
| Jul 13, 2015 at 23:11 | comment | added | Nicholas | @Joe That's also true, but seems like an unrealistic restriction to me. Especially given that because of the way credit scoring works it's often better to put the house under one person's name, even when you have a two income household, and thus are limited to that one person's income for the purposes of DTI. To keep both houses under that limit with 20% down, an individual with a $100k/year income would be limiting themselves to a $300k home... | |
| Jul 13, 2015 at 22:47 | comment | added | Joe | Seems like an easier choice is to structure things such that [cost of house now] + [cost of new house] < 45% of total income? | |
| Jul 13, 2015 at 21:28 | history | answered | Nicholas | CC BY-SA 3.0 |