Share post
member profile picture

I'm hoping to get a bit of information and understanding.

I am two years in to a DMP and the experience has been good. I decided that it may be time to look at buying a home and started that process this week.

The mortgage dude I am using was highly recommended to me by a friend and when he ran the online mortgage qualifier, it came back as approved.

Debt to income ratio was much lower than required, credit score well above 640 for an fha loan, long employment history etc, income levels good for amount I am wanting to puchase.. All very, very good. Except, he is concerned about the dmp having an impact in actually getting hands on the money. He just sent me an email indicating that most banks won't loan to someone in a dmp. What?? I thought two years of solid payment history was acceptable.

Is there any reason to suspect this wouldn't go through for me? Can anyone speak to this?

Thank you,

bikerchick1




A lot of mortgage lenders don't prefer to give out loans to people who have enrolled into a DMP. This is a fact.

Sub: #1 posted on Mon, 11/12/2012 - 20:29

Unregistered


DMPs are a moderate-high risk for a mortgage lender. If you enroll in one it shows just that - you cannot 'manage' your debts. Now, I say moderate to high as it is certainly less risky than a BK, but more risky than a debt consolidation loan on your credit report.

This is probably going to be decided by an underwriter who looks at the big picture. If you can demonstrate that you are paying everything for two years (and maybe a reason for why you had to enter the DMP) along with your income you may be able to get the mortgage. Don't expect a nice low rate though. As I said someone who is in a DMP is a moderate-high risk for any lender. To clarify you are still in it, right? If so how is it not bringing your credit below 640? Are you paying above the min through the plan?

Sub: #2 posted on Tue, 11/13/2012 - 22:15

waffles waffles
Moderators Cum Industry Expert
(Posts: 1697 | Credits: )

sjhill

Sub: #3 posted on Tue, 11/27/2012 - 03:05

Unregistered


Attachment
More information
  • Files must be less than 500 MB.
  • Allowed file types: txt pdf jpg jpeg png.


Page loaded in 4.765 seconds.