VA Loan Rates are amazing at the moment and with home prices significantly down from there 2006 peak, buying a home in San Diego with your VA Loan maybe the best decision you make in 2012.
FHA Loan Requirements for Debt-To-Income Ratios is a post from: FHA,VA and Conventional Home Loans in all 50 States
When applying for a FHA home loan in California an important component of qualification is calculating debt-to-income ratios (DTI). There are two different DTI’s important in FHA loans, front ratios and back ratios.
Front ratio is your total monthly house payment (mortgage+taxes+insurance) divided by your total gross monthly income. So for example if you make $70,000 a year and your house payment is $2,000/mo, your front ratio would be 34%. This is acceptable for a FHA home loan. If your front ratio were say 49%, it would be unacceptable.
The back ratio is your housing payment + all your other monthly debt that appears on your credit report (credit card payments, student loans, car payments). So let’s say you make $70,000 a year, you have a $2,000 house payment and you also have a $300 car payment $50 credit card payment and $150 student loan payment. Take your $2,000 house payment + $500 in additional debt = $2,500 and divide into your $5,833 monthly income and you have a 42% back ratio. This is totally acceptable for a FHA home loan. To qualify for a FHA home loan you cannot exceed a 45.9% front ratio and 55.9% back ratio. If your credit score is below par, you could be limited to a 43% back ratio.
So I hope this explanation helps understand a little about the importance of debt-to-income ratios with FHA home loans. If you have any questions please call at 858-922-7899 or email me a homeloan8@gmail.com
Below are some highlights of FHA home loans in California right now:
- FHA loan limits have gone back up in many counties of California where you can now go up to a loan of $729,750 with 3.5% down payment in areas such as Orange County, Los Angeles, San Francisco, San Jose, Anaheim, Santa Ana and others.
- FHA allows for all of the 3.5% down payment to be a gift from a relative
- FHA loan interest rates are at record lows
- FHA loan requirements allow for a non-occupant co-borrower
Regards,
Warm Regards,
Rob Chomentowski
Sr. Loan Officer
858-922-7899
homeloan8@gmail.com
Related posts:
- FHA Loan Requirements for Debt-to-Income Ratios In California
- Understanding the Debt-to-Income Ratio to Qualify for FHA Loans
- The Importance of Debt-To-Income Ratio When You Apply For a FHA Loan
New 2012 VA loan limits for California in have just been published and there have been some substantial changes. VA loan limits in the state of California range from $417,000 to $625,500 depending on the median home price for each county in California. These VA loan limits are for 100% financing. So a VA borrower can get a loan with zero down payment with the following VA loan limits. A VA borrower can go above these loan limits with a small down payment. The following list below lists the changes:
- Alameda County:$625,500
- Contra Costa County:$625,500
- Los Angeles County:$621,000
- Marin County:$625,500
- Napa County:$460,000
- Orange County: $621,000
- San Benito County: $625,500
- San Diego County: $477,000
- San Francisco County: $625,500
- San Luis Obispo County: $457,700
- San Mateo County: $625,500
- Santa Barbara: $598,000
- Santa Clara:$625,500
- Santa Cruz County: $610,650
- Sonoma County:$419,750
- Ventura County: $518,650
Again the above VA loan limits for California are only for zero down. You can go above these loan limits by putting down 25% of the difference between your purchase price and the county VA loan limit. For example if you wanted to purchase a home in Los Angeles County for $800,000. You would have to put down $44,750 ($800,000 purchase MINUS $621,000 LA County loan limit = $179,000 X.25%=$44,750).
These new VA loan limits will be in effect for all VA home loans closing on 1/1/2012 or later.
If you have any questions about these feel free to call me at 858-922-7899 or email homeloan8@gmail.com.
Below are some other highlights of VA home loans in California:
- VA loan interest rates are at all time lows
- VA loan refinance transactions are very simple and can allow you to lower your VA loan rate to market
- VA home loans do not have monthly mortgage insurance
- You can get a VA home loan only 2 years after a foreclosure, bankruptcy or short sale
- VA loan credit does not need to be perfect
Best Regards,
Rob Chomentowski
858-922-7899, homeloan8@gmail.com
Sr. Loan Officer (and VA specialist)
I highly suggest you read the post to see how Admiral Nimitz saw the silver lining in one of America’s darkest hours.
Sunday, December 7th, 1941–Admiral Chester Nimitz was attending a concert in Washington D.C. He was paged and told there was a phone call for him. When he answered the phone, it was President Franklin Delano Roosevelt on the phone. He told Admiral Nimitz that he (Nimitz) would now be the Commander of the Pacific Fleet. Admiral Nimitz flew to Hawaii to assume command of the Pacific Fleet. He landed at Pearl Harbor on Christmas Eve, 1941. There was such a spirit of despair, dejection and defeat–you would have thought the Japanese had already won the war.
Pearl Harbor Dec 7 1941
On Christmas Day, 1941, Adm. Nimitz was given a boat tour of the destruction wrought on Pearl Harbor by the Japanese. Big sunken battleships and navy vessels cluttered the waters every where you looked. As the tour boat returned to dock, the young helmsman of the boat asked, “Well Admiral, what do you think after seeing all this destruction?” Admiral Nimitz’s reply shocked everyone within the sound of his voice. Admiral Nimitz said, “The Japanese made three of the biggest mistakes an attack force could ever make or God was taking care of America. Which do you think it was?” Shocked and surprised, the young helmsman asked, “What do mean by saying the Japanese made the three biggest mistakes an attack force ever made?” Nimitz explained. :
Mistake number one: the Japanese attacked on Sunday morning. Nine out of every ten crewmen of those ships were ashore on leave. If those same ships had been lured to sea and been sunk–we would have lost 38,000 men instead of 3,800.
Mistake number two: when the Japanese saw all those battleships lined in a row, they got so carried away sinking those battleships, they never once bombed our dry docks opposite those ships. If they had destroyed our dry docks, we would have had to tow everyone of those ships to America to be repaired. As it is now, the ships are in shallow water and can be raised. One tug can pull them over to the dry docks, and we can have them repaired and at sea by the time we could have towed them to America. And I already have crews ashore anxious to man those ships.
Mistake number three: every drop of fuel in the Pacific theater of war is in top of the ground storage tanks five miles away over that hill. One attack plane could have strafed those tanks and destroyed our fuel supply. That’s why I say the Japanese made three of the biggest mistakes an attack force could make or God was taking care of America.
Admiral Nimitz was able to see a silver lining in a situation and circumstance where everyone else saw only despair and defeatism. President Roosevelt had chosen the right man for the right job. We desperately needed a leader that could see silver linings in the midst of the clouds of dejection, despair and defeat.