Mortgage Loan USVI

Knowing how much you are able to pay has a lot to do with your Debt-To-Income (DTI) ratio. This is the percentage of your gross income that goes towards paying debts. 

For example, if your gross family income per month is $5,200 and the monthly debt payments amount to $1,200, the DTI would be calculated by dividing your monthly debt by your monthly gross income: $1,200 / $5,200 = 0.23 This means your DTI is 23%. As a rule, we recommend the percentage to be 43% or less. Nonetheless, depending on your profile, you may qualify for other products that allow for a DTI over 43%.  Your new monthly mortgage payment (PITI) for the subject mortgage transaction will also be included in the debts. 

To evaluate a mortgage loan, the debts included in your credit profile/credit references are taken into account.  This includes revolving accounts, personal loans, auto loans, student loans (if applicable); as well as debt outside of the credit report, such as rent and maintenance payments, taxes (for other properties), and child support.

As a rule of thumb, lenders require two years of employment to qualify for a home loan.  Your job history is just one of several criteria underwriters will check when you buy a home or refinance an existing mortgage.  You may qualify to purchase or refinance your home if you meet certain requirements, you are permanent in your job, you can present evidence of the last 24 months (as of the day the application is submitted) that you were studying/working in the same field, and if the income is not from self-employment.

Yes, it is possible to buy a house without credit, there are options available that consider alternative credit. This means monthly payments and expenses such as rent, water, electricity, furniture, and utilities. You must furnish a payment history certification for the last 12 months. FHA loans with nontraditional credit or manual underwriting may be worthwhile strategies for buying a home with no credit. However, building credit can improve your mortgage loan options.

Your Loan-To-Value (LTV) ratio describes how much money you owe on the house compared to the appraised value of the property. You can find your LTV by dividing your mortgage amount by the house’s appraised value or selling price, whichever is less. The LTV varies according to the investor, transaction type, whether it is a sale or refinancing, and the use to be given to the property.

For example, imagine you are buying a home whose selling price or appraised value is $100,000. If your down payment is 20% ($20,000), your bank will loan you the remaining $80,000. Therefore, your LTV is 80%.  The main advantage of a higher down payment is that it helps you obtain a lower interest rate and make your monthly payments lower. Above 80% on several products requires private mortgage insurance (if applicable).

Yes, you may receive donations to cover part of the down payment and closing costs. If you have a relative that wants to help you purchase your home, they may contribute to your closing costs or initial down payment. Documentation will be required to validate the source of the donations. Please keep in mind that these requirements may vary by loan type and the use of the property you want to buy because is only for your main residence or second home, donations are not allowed in investment properties.