We have used numerous online affordability calculators, they all seem to give different results. I'm assuming it's because the calculators use different DTI ratios? I'm trying to figure out how much we can borrow before we start seriously shopping. We are considering both new construction and resale homes.
First question. The max FHA loan limit in our area is 271k. If the home is 290k, do we put down the 19k difference plus 3.5%?
Second question. Do most lenders allow you to max the the 31/43 FHA DTI limit. I'm seeing a lot of information about "overlays" and restrictions.
Credit. 718 middle Fico. Wife
is 658 middle Fico. Wife has two collections. Both medical from 2009. One is for 10$ and the other for 89$.
Income. 42k. Wife 40k ( 82k household gross).
Source of income. Employment
Monthly debt payments. Auto loan 614$ Monthly for 60 months. 49 months remain. Credit card 45$ Monthly (can be paid off). We also 8 other cards with zero balances.
Employment W2 Salaried, 8 years with employer. Wife is W2 salaried, 9 years with the employer
Assets/Reserves. 401k 8,000$ Wife 401a 22,000$. We currently have 20k in savings.
Location. Union County NC 28110 (low taxes)
Property. Single family house
Occupancy. Primary residence