Buying a house

[frenchy69]

Hey everyone,

 

It’s been a while since I last spoke with you all. How are you doing?

 

I have some exciting news to share about my daughter. She and her husband found a house, and their bid was accepted!

 

But here’s the catch: her husband was sued for $200,000 a while back. He had set up a payment plan, but apparently, they found out he’s making a lot of money.

 

My daughter is really stressed out right now. She’s afraid that the loan won’t go through. Can they really turn down the loan at this point?

[liverichly]

Hey frenchy,

 

The payment will just be included in the debt-to-income (DTI) ratio to determine if he qualifies.  So, it's not so much the fact that he got sued and lost that is the issue, it's that he has a monthly payment on that debt now.  Do they qualify after factoring in the payment?  They need to speak with their loan officer ASAP to determine that.

[frenchy69]

 

So, is it just the payment that’s being questioned, or the total debt? He easily qualifies for the loan since he makes $25,000 a month.

 

There’s no doubt about his qualifications.

 

He’s just a bit worried that they might deny the loan since it was a last-minute request.

 

[liverichly]

The only item that matters is the monthly payment amount.