Mortgage Ratios

[Kojak]

Does anyone know the standard total debt-to-income and housing debt-to-income ratios for a condominium mortgage? I know a house is 36% and 28%, respectively, but I was wondering if a condo would have higher ratios because the cost of ownership is less (well, at least it used to be).

Thanks.

[XtremeVision]

The amount of DTI a lender allows is dependent on what program you are using. Most lenders allow 50% and some allow up to 55%. Just depends what you are trying to do.

[Kojak]

I bought a condo in Channelside and it won't be complete for 2+ years. Depending on my income (I expect to be making significantly more in 2 years) I may put less down and finance more. So, this got me thinking, what would be the max I could finance based on my projected income in two years. It would most likely be a 30 year fixed, but am unsure until the time gets closer.

On the other hand, if something happens in the economy and my income is less than planned, I would put more $$ down (about 35-40% of the purchase price). I would rather put less on it and have bigger payments and get the tax benefits and have the extra cash in other investments.

BTW - thanks for the reply.

[XtremeVision]

You can finance up to 100% of the purchase price. You will just have to come out of pocket for the closing costs. Some builders will pay for some of your closing costs if you use there mortgage company and title company. Somtimes this may seem like a deal but they end up charging you more just to pay you some back. If your income is fine, you can be allowed up to 50% DTI.

If your income doesnt work or you make money doing other things and dont show all of it, you can always go with a stated program and then you state your income and then it still shows that your under the 50% mark or wherever you need to be.

What condo are you going with?

[Kojak]

Thanks for the help.

I will most likely finance as much as I can. I have a condo in Hyde Park at this time and will be selling that and rolling whatever I get out of that into the new place. But, if my income is up, I may finance more and add whatever is left to my other, more liquid investments. But, then again, who knows what will be going on in the economy in 2 years. I have been at my company for 6 years, so my income is consistent, and I have a credit score of 700+, so, I think I could get around the 50% if wanted.

I bought at The Slade. I will be on the 6th floor facing downtown Tampa/the cruise terminal (Meridian and Kennedy). I have been researching the Channelside area for over a year and have spoken to many people about the area. It looks very promising once everything get's up and going and built out.

[RyanCivic2000]

If you have good credit you can get just about anything. I bought a home where the monthly payment is about 50% of my gross monthly income. I have someone who will be helping pay that will not be on the mortgage though. 50% of my income into a house payment is a little much.