+1 vote
asked in Conventional by
I have a 705 credit score and zero late payments. I have a 16 year job history and make 80,000 per year. I also have a nine year rental history. I have the opportunity to purchase the townhome that I’ve been renting but I’m concerned because my DTI is 48.5%. Do you think I will still get an approval? And if so, do you know if I will need mortgage reserves and if so approximately how much? I’m using a 401(k) loan for the down payment and closing costs. Any info would be appreciated! I’m so glad I discovered your website as there is so much valuable information to help educate first time homebuyers!

1 Answer

0 votes
answered by (40.8k points)
You can go up to a 50% DTI with a 705 credit score on conventional loans. You do not need reserves. You can qualify for a 3% to 5% down payment conventional loan. Please reach out to us at gcho@gustancho.com. We would love to help you qualify and approve your loan. Or call us at 262-716-8151 or text us for a faster response.
commented by
Thank you so much!  I wish I would have discovered you guys sooner.  I’m really hoping the mortgage broker can get me approved. She is using UWM. If I don’t get approved, is it worth trying to get a mortgage through you, or once I’m denied do I need to hold off for a while. This is such a good investment for me and I would hate to lose out due to a night DTI.