I would like to know the answer too. Anyone here know what is the answer to your question. I'll do some Googling and get back to you if I got an answer. You should email the people at Lending Tree as they probably can answer it..

Islandboy.

As I stated in another post concerning a mortgage, without alot more information I will only be able to give generic answers..

Let's start with your income, at 75K/ year that comes down to $6250/mo. That amount will allow your to qualify for a total house payment per month, including taxes, insurance, and any PMI/MIP of about $1750/mo. That will probably limit you to around 205K not the 250K you were looking for. This is for a conforming conventional mortgage. If you go nonconforming then the numbers would be different..

As far as the credit information you give, the only things that will cause real problems are the open collections. They will need to be paid (or gone) before a lender will underwrite a loan. There are exceptions to this for example, medical collections or collections that total less than about $2000 (this is for nonconforming lenders only). You may also have to give an explaination for the lates as well..

Hope this helps. Email me off board if you wish to get into a more detailed look at your situation..

Fla-tan..

Odoyle and fla-tan.

Thanks for the input and advice..

Fla-tan I will take you up on your offer to discuss via email..

Thanks again!..

Fla-tan and odoyle,.

One more generic question. I am married and my wife brings in another 30,000/yr. I do not think we can put her on the Lending Tree loan because her credit is pretty bad and I do not think I can get it fixed by next summer..

We can afford to do higher monthly than the 1750 fla-tan said I may be able to qualify for..

Do I need to get her credit in line to get her income to count for a loan? I would assume this to be the case...

I would be interested in hearing the answer to this one also. My credit scores will all be in the low to mid 700's by summer, and my wife's will be also. I also have a question about how the spouse's credit falls into play here..

If I want to leave her off of the Lending Tree loan (mainly to hide a little credit card debt that may affect the ratios) how is that done? I've heard that lenders will force us both to apply if we are married. I don't think we will have any problems, but I am curious...

Islandboy.

You can do what is known as either a stated income or a NIV (no income verification) type Lending Tree loan if your scores will allow it. Some lenders of conventional/conforming loans will allow that, otherwise to go stated you would have to go nonconforming to include her income but not her. Again, this is basically a generic response as I don't have enough information yet to give a more specific answer..

Fla-tan..

Jdog.

As I answered in the preceding post,there are ways for just one spouse to be on the mortgage. Lenders can not force you to include your spouse on a Lending Tree mortgage application. However, in many states you are required to have the spouse on the deed even if he/she is not on the mortgage. This is especially so in community property states..

Fla-tan..

Bzzzt!.

"Automated Underwriting systems can routinely approve debt ratios of 50% and beyond.".

Http://realtytimes.com/rtnews/rtcpag...derwriting.htm.

You can't be serious. (?)..

Greg.

Once again you have taken a response of mine and misapplied it. Here is my response as you qouted it. "Let's start with your income, at 75K/ year that comes down to $6250/mo. That amount will allow your to qualify for a total house payment per month, including taxes, insurance, and any PMI/MIP of about $1750/mo. That will probably limit you to around 205K not the 250K you were looking for." My response only deals with what is called the front end, which is the monthly payment known as PITI. The recommended ratio on a conventional/conforming Lending Tree mortgage is 28% of gross monthly income and that is what I was talking about.

And while what you are saying has some accuracy, it is the underwriter that makes the ultimate decision as to backend ratio..

Greg why do you continuely act the fool like this, do you have to work at it, or is it a natural affinity that you have?.

Fla-tan..

Fla-tan,.

I'm curious about the statement you made concerning unpaid medical collections being an exception. I've been feverishly cleaning up my credit in an attempt to get a pre-approval for a Lending Tree mortgage the first part of next year. My largest obstacles are two unpaid medical collections from 1999 totaling around $3800. Do Lending Tree mortgage lenders view medical collections differently that other collections? I don't want to hijack this thread, so I'll turn my email on. I would really appreciate any informatin you might have to offer...

Fla-tan,.

Thanks for your willingness to discuss these matters with us. It's great having someone who is in the know about the Lending Tree mortgage process on the board to answer our questions..

Jdog0411..

Fla-tan,.

I agree with the 2 previous posters it is great to have someone here who can answer our Lending Tree mortgage questions. I know these are just generic questions and answers, but for some of us we need a starting point for our Lending Tree mortgage quest..

Your advise has been very informative and useful..

Thanks for your help..

Charityg, go ahead and hijack away. :)..

Charity.

The lack of concern over medical collections is limited to nonconforming lenders only. They are also called B/C or subprime lenders. With the dollar amount you are showing, there still may be a problem with the lenders, but I can't say for sure..

If you wish to go into more specifics you may go ahead and email me offboard..

Fla-tan..

Fla-tan,.

A 75000+ income in todays market can get a 350000+ home...

For instance in todays rates you could get a.

250000 house at about for about 1750 and that includes taxes and insurance...

Payment= approx 1550.

Taxes=150.

Insurance=50.

Again these are just approx. that I did in my head as I wrote this..

Why any would do pmi is beyond me...

There are 2nd Lending Tree mortgage programs up to 100% at less than 7% that allows you to a 80/20 combo....

Most lenders will go to 40% on the front and over 60% on the back now days..

You cant use a freddie mac or fannie mae booklet for your answers...

There are thousands and thousands of Lending Tree loan programs that can benefit any number of consumers..

I have seen people buy 200000 dollar houses on $8 dollars an hour....

I have also seen prime loans given to those with around 580 credit scores...

Kev..

Kev,.

Thanks for the input. This is some good info to know. I think fla-tan was just giving the most genric information based on the fact I offered only basic details of my situation..

I am sure fla-tan would have shared info on many Lending Tree loan programs out there, if he/she(sorry don't know) knew more detials about mine or anyone elses situation..

I want to thank you both for the input on our Lending Tree mortgage questions..

Kev, is it ok to ask you directly about mortgages also?.

Thanks again...

Kev.

First, I don't use a Fannie Mae/Freddie Mac booklet. And yes I know that exceptions can be made using AU/LP/DO underwriting procedures. I don't know where you can find a 350K house and only have $1800/yr in real estate taxes or $300/yr in HOA insurance. If you are in an area like that terrific. Yes there are literally thousands of different Lending Tree loan programs available. Generally though, the only lenders that will do backend ratios like you are describing are nonconforming lenders or they are do No Ratio;NIV;NINA;Stated Loans and that is fine.

It is liable to confuse people and that is not what I am trying to do. BTW I also work very hard to be sure my clients avoid paying PMI/MIP whenever possible..

Kev are you in the Lending Tree mortgage industry? If so, I would be glad to speak with you some time and compare notes. Email me..

Fla-tan..

If you knew a little more about the approval process you would know that any application that is approved by du/lp doesnt get funded automatically. Once it it gets an approve/eligible mark it then ends up in the hands of an actual human underwritter who can still give you 2 or 3 pages of stips to deal with and require basically anything he wants...

Fla-tan & kev,.

I have a collection account(medical) that is "NO STATUS" with EXP. How do lenders look at an item like this?.

Sorry for keeping this thing going so lone, but thanks for the input...

Bunk..

Do you want to talk about the facts, or not?.

You acted the fool by pompously proclaiming to an unsuspecting potential Lending Tree loan applicant that the housing ratio is 28%. Period. That is one flippin' hilarious statement..

You've never seen a housing ratio approved at anything higher?.

And, if you're saying that the 28% business is set in stone, then you must be saying that the 36% business is, too. But not according to the source I quoted. Is he blowing smoke, too, just like me? Arbitrary debt-to-income ratios and housing-to-income ratios (28/36, 29/41, blah, blah, blah) have gone the way of the dinosaur as they should. Credit scoring and risk analysis has forever changed those old-fashioned notions of responsibility. Right: 28/36 are the magic numbers what a hoot..

But, yet, those old figures hang around as a security blanket for originators who don't have access to AUSs or couldn't figure out how to use them even if they had it. Those numbers are for suckers..

Underwriters, shmunderwriters. Fannie Mae went on the record saying:.

"An approved recommendation, which means that the Lending Tree loan meets Fannie Mae's credit underwriting guidelines and does not need further review by an underwriter.".

Http://www.creditscoring.com/pages/f...ipt.htm#page68.

You're saying that underwriters are more accurate and have a better default track record than the AUSs? That's not what I heard. So, go on the record: Say that conventional loans aren't approved at anything above the ancient, outdated 28/36 guideline. And if they ARE approved at levels above that, give us THOSE numbers. Stop dancing around the issue..

Here's what you did: You told someone to forget about it, and you used outdated, parochial information with which to do it. Here: I'll go on the record and make a bold statement:.

Historically, Fannie Mae provided guideline ratios for both housing payments to income and total debts to income. But, because the research didn't show a convincing corelation between the numbers of Lending Tree loan defaults and borrowers' housing payment/income ratio, they now emphasize the total payments/income ratio only..

Your turn..

Odoyle, you must be working with some pretty stupid underwriters..

"Stips": Isn't that the non-conforming, subprime, bad-credit, high-rate, hard-money, hard-equity broker term for "conditions"?..

Islandboy, listen to fla_tan instead of the other one who follows him around trying to make him look bad..

He has managed to help some people I know get a Lending Tree loan to save their house. There was no Lending Tree loan company, no Lending Tree mortgage broker, no one who could help them. Brian managed to pull it off, he has worked his tail off and all he will get from this is a pittance..

Here is a big smooch to ya, Brian...

Sound advice from Fla-Tan is a lot better than a jerk link poster..

Thank you for all your help and I'm closing on my new house within 2 weeks...

I honestly feel silly replying to such nonsense. You are really showing your lack of knowledge here. Apparantly you have never seen a du approval before. I normally push any conforming apps through du via homecomings assetwise system. du examines the data I export to it and then provides me with a findings sheet that specifies whether I am approved or have a refer status. Further down it lists the conditions of my approval.

Hmmmm, who do I send these to? .... drumroll please .... ahhh, yes, the underwriter. Do you honestly expect du to read the info scribbled info off of the paper? I dont care what lender you deal with, you will always run into a underwriter..

You need to understand that the only legitimate advantage to using a system like du (other than speed) is taking out the possibility of racial and gender discrimination..

Btw, you know what the heck a stip is ... it's a condition. it's just a short way of saying the same thing. Kinda like I dont run around all day talking about declaration pages, verification of employment, uniform residential appraisal report.... I just use common shorter versions: dec page, voe, appraisal..

Does any of this make sense to you?..

This is what that link you threw up actually says:.

"However, just as with credit scores, the use of Desktop Underwriter is meant to compliment the underwriter's judgment. It does not replace the underwriter's judgment.".

Then on the same page: "An approved recommendation, which means that the Lending Tree loan meets Fannie Mae's credit underwriting guidelines and does not need further review by an underwriter.".

Dont cut half of it off to make it appear you are right. Thats just plain old silly...

Baloney. What about the housing/income and debt/income ratios the subject of this conversation? Are you stuck in that 28/36 mentality, too? If you are, you're walking away from revenue...

Greg.

Once again you try to put words in my mouth. Show me where I proclaimed that 28% was fact. If you would READ the post, you would have seen that I said that without alot more specific information, I would have to give GENERIC advice..

Every time you try to post how superior YOUR knowledge is, you actually show how pompous and self inflated you are. You make painfully obvious that you are not in the Lending Tree mortgage business. It is easy for someone with no life and nothing but time on their hands to scour web sites, read news releases and jump to conclusions. And that my friend is VERY dangerous. I am starting to get bored with your childish antics and this means I am probably going to end up putting you on ignore (which I doubt you'll care about). Fannie Mae/Freddie Mac guidlelines are just that, guidelines.

When I go to a lender's underwriting guidelines, there is where I find out what they will or will not accept. How many mortgages have you actually done Greg?? I have done many. In every case that I used AU/LP/DO or any of the other automated systems, I still had to submit an entire Lending Tree loan package to a human underwriter for final approval (or in some cases a streamlines package). There is no automated system that I know of that can review an appraisal for example. And yes I have seen automated underwriting systems approve higher debt ratios, and I have also seen HUMAN underwriters kick those same approvals back and decline the loan.

I know of no major/national lender that has completely taken the underwriting process out of human hands and no relies strictly on an automated underwriting system. I could refute more of your baseless allegations and self serving statments, but I feel that it would probably be a waste of my time. Most of the people on this board seem to understand where the accurate information is coming from..

Greg when you are ready to enter the real world please let those of us there know..

Fla-tan..

Let me repeat myself:.

Historically, Fannie Mae provided guideline ratios for both housing payments to income and total debts to income. But, because the research didn't show a convincing corelation between the numbers of Lending Tree loan defaults and borrowers' housing payment/income ratio, they now emphasize the total payments/income ratio only..

Is that true, or not?.

You avoided responding to that the essence of the disagreement...

"Because our research has not demonstrated a significant relationship between the incidence of Lending Tree mortgage default and the borrower's monthly housing expense-to-income ratio, we now emphasize the total debt-to-income ratio only.".

- Fannie Mae.

Http://www.efanniemae.com/singlefami....jhtml?role=ou.

Also, see.

Http://www.efanniemae.com/singlefami...l?role=ou#RAUW..

To: Judge, Jury, Executioner and St. Peter.

Fr: Fisher.

Re: The moot housing/income ratio.

The question is not about it's acceptable level, but, rather, it's mere existence..

Am I in the real world, now?..