buyer income and eligibility - Posted by Kristine Poe

Posted by cc on May 22, 2000 at 20:01:56:

Debt to income, some of the lenders I work with allow up to 60% DTI if there is at least $100.00 per house hold member left. 28% for housing / 35 to 40% total is not realistic in subprim lending.

buyer income and eligibility - Posted by Kristine Poe

Posted by Kristine Poe on May 21, 2000 at 22:53:37:

I am wondering about how to determine if a buyer’s income is enough to afford both the term payment and the lot rent. In the area I am looking into, lot rents (with utilities and water, a high cost in So. Calif) are well over $450. As housing costs are high here, the cheapest I think I could get a home for is $5000-7500. If I mark up the cost of the home 100%, the monthly payment on a 5-year note is $165-235. That puts the monthly housing costs at $615-685. Area rents are similar. For HUD financing, you can only borrow at 29% of monthly gross. Banks here are lending at 50-55% of monthly gross, but that’s for appreciating real estate. I can’t imagine carrying paper for someone if the payment was over 35%. So the way I see it, my buyer needs to make at least $12.00 per hour so that they don’t become cash poor. Am I on the right track here, or are low-down payment/poor credit buyers a different market altogether? Also, are you all finding that the opportunity to own motivates buyers to spend as much on mobile home when they could live in a house for the same amount?

Thanks to everyone for a great message board.