HAFA denied for HTI being too low?
Has anyone heard this one? Wells Fargo (formerly Wachovia loan) has just denied my clients short sale for HAFA stating that their HTI (housing to income) ratio is too low.
I'm not quite sure what that means...my clients are divorced and now have additional household expenses in addition to the subject property.
My Negotiator says we now move to a traditional short sale and start the process all over again...after being in the system for 60 days.
Does anyone know what HAFA guidelines are on the HTI? And how can I double check their calculations to make sure their right??
Replies to This Discussion
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Permalink Reply by Tara Polley on
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If it's a Fannie/Freddie the first mortgage payment must be above 31% of sellers Gross Monthly Income. If it's a non-GSE it can be under with a valid hardship and budget deficit.
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Permalink Reply by Tammy Davis on
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This is a non-GSE...with their separate "new" household expenses there is definitely a budget deficit.
And their valid hardship is a finalized divorce.
I'm thinking I need to dispute this with the lender....
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Permalink Reply by Jim McCormack on
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HAFA is the 31% limit or more. In other words, if the Borrower's Monthly Mortgage Payment is not more than 31% of their Monthly Gross Income, they will not be qualified for HAFA.
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