NCSU2006 Posted November 22, 2006 Report Share Posted November 22, 2006 Hi all - I am purchasing an assumable FHA mortgage in late Jan/early February. I know the FHA is not so much score driven. My question is on my debts. I know they want a good 2 yr history (which I have). I was wondering if there are 2 credit cards (both with balances UNDER $250) will they include those in my debt ratios?. They would both be paid off within 6 months. THANKS!! Link to comment Share on other sites More sharing options...
ybrew Posted November 22, 2006 Report Share Posted November 22, 2006 I'm not positive on the guidelines as to what counts towards debt ratio. The thing I'd question would be - are they to be paid off in less than 6 months because paying the minimum would make them paid off, or will it require you to pay more than the minimum?But, you've got under $500 worth of debt. if the minimum payments on these two cards pushes your debt to income over the threshhold, you can't afford the house anyway. In other words, I doubt you need to worry about this (and you're probably just going through standard pre-homebuying stress).i'd call your mortgage broker and verify this, but only for peace of mind, as I'm sure these debts are small enough to be considered insignificant. Link to comment Share on other sites More sharing options...
sr28b Posted November 22, 2006 Report Share Posted November 22, 2006 I doubt you need to worry about this (and you're probably just going through standard pre-homebuying stress).I agree.FHA has two ratios - a front end and a back end. The front end ratio equals the new mortgage payment (PITI) divided by your gross monthly income. The back end ratio is the PITI + all other debts (on the credit report) divided by your gross monthly income. Guidelines are 29/41 for front and back end.The credit card payments won't make a difference on your back end ratio. Link to comment Share on other sites More sharing options...
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