Any bankers or credit unions out there who have flexibility with DTI on Jumbo loans? Self employed so tax returns aren't great but everything else is clean. Not closing for several more months but want to start getting this process out of the way as I have already had some trouble with my builder's lender on the DTI.

Any interest only Jumbo products available?

TIA.

Get your bank statements together for last 2 years , PFS and short summary about you and how you make money.

Talk to small banks and credit unions and specialists.

US bank is known for jumbos.

If your DTI is 50% or less I'd like to talk to you. My email is on my profile.

Give me a call or shoot me an email(profile).

The builder's lender said the problem was front end DTI....I am about 45% but that is all housing as there is no other debt. They said they cant go over 38% on housing.

I will throw my hat in the ring as well. Contact info in my profile. I would need to check on the 38 with my lenders but I bet I could find one that works for you. Also I would want to really scrub your numbers to confirm DTI.

Some folks are not very good at that for self employed folks. Some are. I would probably go as far as putting a real file together and sending to the selected lender for a formal review and determination of income and debt.

The key to a new home and DTI is how the lender determines taxes. Right now taxes are based on the lot not improvements. But lenders know that the county will eventually tax at market. But they forecast that cost is critical to your DTI. Might have to select a lender with slightly worse price to get a more generous view of future taxes in the file.

I am in Round Rock but that does not really matter unless you have a hang up on the LO coming to your closing.

I don't see that as a problem. It becomes non QM, but doable if your number is right.

I may be in the same position soon...so what's the rate difference if doable but not QM?

Thanks for all the info....I will reach out to everyone on here sometime next week.

Ours is 0.25% added to the rate.

Thanks. I'll be giving you a call when the time is right.

I place hard to fund loans with small life companies - rates in 6s and 7's . We get some pretty messy loans funded, so I'm not selling rate , just solving problems. You dont sound like you have negative credit but if there is more to the story let me know.

Austin Ins Ag:

Pushing DTI with clean credit should be manageable self employed, just takes a little more time and documentation - and everything improves with more down payment or a 740+. But there are good rates out there with DTI's from 43%-50%

Going the bank route is probably easiest but might not be the cheapest rate or the longest term, that will vary; but that's where I'd start.

What you may run into with a traditional brokered mortgage is lengthy/stringent documentation requirements and some thresholds for years in business etc. Probably need CPA / independently prepared returns and financials statements, 6-12 months reserves, documented sources of funds (some might even get excluded). Also different income calculations for Schedule C, S, Partnerships etc.

jja79 said:

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Ours is 0.25% added to the rate.

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That's good there - I've seen as much as a .50 to .75 premium

And Bott is right on that -

And I don't know any wholesale lenders that don't require a manual underwrite for a Jumbo, so submitting a TBD is a good idea when time allows - you might even be able to lock your rate too.