[quote=flinger]For anyone who knows…stable/long-term single-job W2 income, no debt, perfect credit, 20% down, more-than-adequate reserve: as a percentage of one’s income (single person), how much can one borrow right now? Still the 28/36 front-end/back-end ratio?[/quote]
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Guidelines are guidelines. FNMA has about 1300 pages of them. NOTHING to do with common sense.
Only being on a job for a month may not make it any harder than being on a job for 10-20-30+ YEARS.
Perfect credit? Not necessary. A score of 740 and 840 price exactly the same with 20% down.
As long as you can document down payment CORRECTLY, you usually don’t need any reserves.
Loan approvals are automated,technically there is no maximum debt ratio, although many lenders impose one. The underwriters job is simply to make sure the items listed in the approval are met.
Front end/Back end ratio usually doesn’t matter, it’s just total debt that matters, possibly up to 50% +/-, based on the ‘findings’ of the automated approval.
Ratios haven’t been 28/36 in many, many years.
80% of borrowers in CA would have never been able to become mortgage slaves if that was in place.
It’s a fallacy to think that ‘perfect credit’ or huge reserves make it easier to get approved for a loan.
In some cases it could be easier for someone with 3.50% down to get approved than someone with 20% down.
YES, it is insane.
