Qual amount discrepancy

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  • #71054
    SBul_81
    Participant

    So I’m qualified (through Achieve the Dream). Yay! What is not clear is why the pre-qual letter is limiting me to a 28% DTI and 15% housing ratio. I’ve tried repeatedly to gain clarity from my MC since 6/22 but have received no response. While I continue to reach out, I’m wondering if anyone has run into this and how it was addressed. Thx!

    #71056
    Nelsont
    Member

    Without knowing the specifics of your situation it’s impossible to tell if there’s a mistake on your letter or your MC was wrong or your underwriter was much more conservative or a debt popped up that your MC missed or there was miscommunication or a change in income. The first thing you need to do is review your orginal action plan and see how that compares to your letter. The action plan should provide you a housing payment you were striving for.

    #71057
    SBul_81
    Participant

    Thanks for the response. Salaried income, increased savings, no increase in debt. I also don’t need shock payment because my current rent and potential mortgage payment are within range. I suspect that it’s a clerical error but unfortunately, I’m in limbo until my MC responds.

    #71096
    TTrumble
    Member

    Hello SBul_81,

    To put it simply, you are either misreading things, you have a serious affordability problem, or your total debt including your desired mortgage payment is really that small.

    Then only way your DTI shows up under 40% is if your total debt, including the desired mortgage, is actually under 40%.

    The only two ways the housing ratio is under 31% is if your other (non-housing) debts are greater than the 9% difference between the maximum DTI and HTI (40%-31%=9%) or your desired mortgage payment is less than 31%. Since you say your total DTI is only 28%, the excessive debt option isn’t possible.

    So either you have very little debt and desire a very small mortgage payment, or you are misreading something. Debt and housing ratios rarely are very rarely that small, but the fact you have no Payment Shock would limit you to a housing ratio no larger than that of your current rent, so it does add some credibility to the possibility of the desired payment being that small.

    “Clerical error” isn’t an option either since the computer determines those figures.

    I’m afraid you have a genuine mystery on your hands until your counselor responds. Keep emailing until you hear something back, and let us know what you find out.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 1 month, 3 weeks ago by TTrumble.
    #71098
    SBul_81
    Participant

    @ttrumble. I will keep you updated. I was finally able to schedule a follow-up appointment for later this month but I am hoping that the MC will respond to my emails. It is possible that I’m misreading, but without getting into specifics about my income, I only have student loan debt and a car payment. No CC’s or other loans. I’m asking for a $1700 max mortgage payment (I’m lucky to live somewhere that actually has reasonable home prices) which was submitted by the last ATD Counselor, this combined with my monthly debt brings my DTI to about 31%. The amount that is listed on the Affordability Form correspends to a pre-qual amount that was discussed earlier this year before I consolidated my SL’s and paid off debt. When I speak of a “clerical error,” I’m considering the possibility that all information was not updated. I will circle back once I have an answer- hopefully with good news! Have a great day!

    #71154
    johnsoke
    Participant

    Same thing Happened to me back in April… my qual letter was 100k less than what I was told.. long story short my MC never responded to my emails again after saying he would appeal (I waited months . I emailed so many times with no response).. I backed out of the program and bought a house with another lender. This was a horrible experience for me . I hope it works out better for you

    #71872
    SBul_81
    Participant

    Thankfully this was worked out and I was resubmitted. It has been about a little over a week since the underwriter reached out to me about 2 add’l stips. I provided them directly to her within 10 minutes but no updates to my file (also uploaded them and looped my MC in). I don’t want to be one of “those people” but I’m wondering if this timeline is normal or if I should start being a “polite pest?” @nelsont @ttrumble Thanks!

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