Our debt to income ratio (including house payment) is 46% and we’re gonna try to go FHA if we can…we have 4 cars under our name of which 2 are not being paid for by us. One of them we have the 12 months bank statements that we don’t have to pay for it-the other is a company truck and the company reimburses for it-but we don’t have cancelled checks..what do we do to prove that. Also we have a 3k loan we plan on playin goff will they still prequalify us or will they wait til we actually pay it off?

Answer:
46% may be ok depending on your credit. Why don’t you call Wells Fargo and ask them these questions. Every company has its own guidelines. Your credit score may make a difference. At one time, when I was underwriting consumer loans at a bank, you’d need at least a 700 credit score for dti over 45%. Most banks will require that there’s tangible proof you don’t make those payments. The 12 months of bank statements…are those your statements or the person who actually pays statements? If the statements show someone else making the payments, that’s good. If they’re just your statements minus the payments, that’s no good. How does the company reimburse you? Surely they have some kind of records that shows they make those payments. Is there something they can give you? As for the other loan, if you’re including that in your dti, you’re probably ok as long as your credit score is high enough for over 46% dti. If you pay off that $3k loan, will that deplete your reserves? If yes, don’t do it unless you have to.