I received my approval letter/ Qualification Financials letter. The letter states:
MONTHLY MORTGAGE PAYMENT – 30 YEARS: $871
You have been approved for this payment given your rent and regular pattern of savings. The combined principal, interest, tax, insurance and/or HOA for your purchase cannot exceed this amount.”
I took this to mean that I have been approved for $871, as a mortgage amount consisting of PITI (Principal, Interest, Taxes and Insurance).
Then when I found a house, my realtor and I requested an offer letter. My NACA counselor responded that I cannot afford the house, and I have only been approved for $400 PITI. When asked why the letter says $871 this was the response:
“That’s her estimated total PITI for a two family unit, but her approved PITI (member’s portion) is $400, then we can add the 75% of the rental value of the other unit to her portion to determine the total PITI, since rent varies in different area.”
I am so confused. Why would the approval letter present the approved PITI as $871 if it is really only $400? I copied the section of the letter verbatim, and it does not state that the $871 amount has anything to do with an estimated total PITI for a two family unit. Does this mean that the maximum rental monthly mortgage amount that I would be granted for any property is $871, regardless of what 75% of the expected rental income is?
Did you at any point indicate that you wanted to buy a two-family property?
There is no way to really answer your questions without reviewing the letter and your NACA file. Anything else would be nothing more than a guess. Please email me a copy of the letter and your name, NACA ID number and Forum screen name so I can take a look.