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Nancy
Guzman is an Expert Realtor for the Metro Denver Colorado area, who can
help you decide where to live. Because, Nancy understands finding
your special place means taking in many factors that include accessibility
to work, education and recreational activities. It also includes the
size and style of your home, the style of the neighborhood that will make
you feel more at home. All of these factors must come together to
make your new Metro Denver Colorado home, feel like home.
For a PERSON that
wants a New Home and has GOOD CREDIT*, only EXPERT MORTGAGE LENDERS and EXPERT
REALTORS with their Competitive Programs and Rates, will allow You to sleep with
confidence while your HOME BUYING TRANSACTION IS BEING COMPLETED.
*Includes persons
with a past history of bad credit, or you just want to start over again, and
have minimal credit or don't have any credit!
EXPLANATION
OF THE "DEBT RATIO'S" PROGRAM
(FOR A CONVENTIONAL MORTGAGE PROGRAM ONLY)
A...MONTHLY HOUSING EXPENSE-TO-INCOME RATIO: To
develop the monthly
housing expense-to-income ratio, the lender must first determine the borrower's
total monthly housing expense. Monthly housing expense is the sum of--
- the monthly principal and interest installment for the mortgage that is
secured by the borrower's principal residence,
- escrow deposits for the hazard insurance premium, the real estate taxes,
the mortgage insurance premium, any owners association dues,
- any payments required for subordinate financing.
The benchmark monthly housing expense-to-income ratio for conventional
mortgages is 28% of the borrower's stable monthly income.
B....TOTAL OBLIGATIONS-TO-INCOME RATIO: To
develop the total
obligations-to-income ratio the lender must first determine the borrower's total
obligations. Total obligations are the sum of:
- the monthly housing expense,
- monthly payments on installment and revolving debt that extend beyond
ten months,
- monthly mortgage payments on any non-income producing real estate,
- monthly alimony, child support, maintenance payments, or child care on
FHA and VA.
The benchmark total obligations-to-income ratio for conventional mortgage
is 36% of the borrower's stable monthly income.
C....COMPENSATING FACTORS: A higher monthly housing expense-to-income
ratio or a higher total obligations-to-income ratio (or both) may be acceptable
for mortgages that have loan-to-value ratios of 90% or less, if the borrowers:
- are making a large down payment toward the purchase of the property;
- have a demonstrated ability to devote a greater portion of income to
basic needs like housing expenses;
- have a demonstrated ability to accumulate savings and to maintain a good
credit history or a debt-free position;
- have net worth substantial enough to evidence their ability to repay the
mortgage.
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