Home Buyer FAQ: What Is Debt to Income (DTI)?

DTI stands for debt-to-income, also referred to as the back-end debt ratio. It shows how much of your gross monthly income is needed to cover all your debt obligations. Follow these steps to determine your approximate DTI: Add up all your debt (including your mortgage, car loans, child support and alimony, credit card bills, student loans, etc.). Divide this amount by your monthly [...]

Home Buyer FAQ: Are there Credit and Debt Requirements?

For Down Payment Assistance (DPA) or MCC/DPA programs: FHA Loans, VA or USDA-RHS Loans Home buyers must have a minimum FICO score of 620. Please note, home buyers with a FICO score of 620-639 will be charged a .50% origination fee. Manual underwriting is acceptable for FHA loan files with a minimum 640 FICO score and maximum Debt to Income (DTI) ratio of 43% Conventional Loans Home buyers [...]

How Do I Obtain a Copy of the Mortgage Credit Certificate?

The lender through which you received your mortgage can help you obtain a copy of your MCC. Please reach out to them directly for assistance. Again, this video is only to help your lender learn how to obtain a copy of your MCC. For any additional questions, please feel free to email [...]

Home Buyer FAQ: I Have a Mortgage Credit Certificate. What Happens if I Sell My Home or Move?

You may be subject to Recapture tax if you decide to sell your home within 9 years. See details about Recapture Tax here. If you move, but decide to keep your home and rent it out, you simply will not be able to take the credit any longer. You must live in the home as your primary residence to continue to take the [...]

Home Buyer FAQ: What if I Refinance My Loan? Can I Keep My Mortgage Credit Certificate?

Yes, but you must apply for a reissued Mortgage Credit Certificate (MCC) from TSAHC. The refinance loan must meet certain requirements to qualify for a reissued MCC. Please find the MCC Reissuance Application here: [...]