We’ve seen an uptick lately from our conventional mortgage peers whose borrowers are in jeopardy of not getting a loan when the combination of the borrower’s FICO and DTI kills their 1st and 2nd combo. Last week, we funded one such scenario. The scenario unfolded as follows:
- 1st mortgage – at the high balance limit for the county
- Credit scores were below 720
- DTI was above 40% needed for the 2nd mortgage and below 45% needed for the first mortgage, even with our 2nd
- LTV – CLTV needs to be 70% or less.