In the event the buyer's ratios are too high for approval, it might be possible to get approval if the bank is thinking creatively. If the borrower is in a good equity position on the home they currently own, the bank might be able to "re-cast" their exisiting mortgage, or re- amortize the mortgage to lower the borrower's current monthly mortgage commitment and thus lower their debt for the debt ratio considerations for the new loan on the new property. In the case I had, the borrower had his mortgage with the bank he was using to try to buy the new property. His debt ratios were high which made it difficult to get approval for the new property. So, I asked him if the bank would re-amortize his current loan to spread the remaining payments out over a longer period and lower his payments. The bank agreed to to do this, without underwriting and closing costs. The only charge was a nominal fee to the borrower to secure the re-am. It worked, and the buyer was able to resubmit his loan request showing lower debt ratios and thus purchase the new property. Try it.
Tripp Champion, Realtor
John R. Wood Properties, Naples, FL