My DTI is not as high as it appears!!!
| Listing Information | |||
|---|---|---|---|
| Amount: | $12,000.00 | Status: | Loan created |
| Grade: | A | DTI: | 56% |
| Lender Rate: | 13% | Borrower: | SirSteve |
| Finished | State: | CO | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2007-08-16 | EricsCC ROI: | 11% |
| Status History | |
|---|---|
| Aug 27, 2007 | Current |
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My personal debt to income ratio isn?t as high as it appears. Please consider the following: I have three distinct categories of debts on my personal credit report. The first are business loans and lines of credit since I?m a sole proprietor. Next are my student loans, and lastly are my personal debts. The first category, my business Ls/LOCs are from my activities as a professional real estate investor. I?ve been buying, fixing, renting and/or selling homes for 4 years and have been very successful to date. Close study of my credit will show that most of my Ls/LOCs are often charged up during a house project and then paid off after the sale. I?ll be completing one of my houses in the next few weeks and will have it on the market immediately thereafter. I?ve had tremendous interest in this home and I?m confident that it will sell quickly and for a healthy profit, just as my others have. I?ll be paying off all of my business lines after closing which will immediately reduce my DTI to half the reported number. -Please note that my continued financial health does not depend on a quick sale! I have carrying capital set aside just incase things take longer than expected. Next, consider my student loans. In September I?ll be starting my third consecutive year of undergraduate studies at Harvard University Extension School (online). My student loans are payment-deferred until after graduation but are still calculated in my DTI making it artificially high. Lastly but quite significantly are my personal consumer Ls/LOCs, my highest fee obligations. These are the debts I?m consolidating and refinancing with my loan from Prosper. This will take my average interest rate down several points, dramatically reducing my overall cost of funds. By my calculations my effective DTI, after backing out my business and student debts, and after refinancing with Propser, will be somewhere around 20%. About me? I?ve been with my college sweetheart for 20 fabulous years. We?ve been married for 12 of those years. We have 3 wonderful kids (5, 8, & 10 years old) and have lived in our neighborhood for the past 8 years. I was a military reservist for 17 years, a securities investment consultant for 5 years and now work as a full-time real estate investor. I?m very active in my community and have served in elected and volunteer position here. My wife is a career woman who deservedly out-earns me and generously shares my debt load though she has little debt of her own. We tease her that she?s our ?suga-mama?, but she all that and so much more! Thank you for your kind consideration Prosper investors! |
| Borrower's Other Listings | |||||
|---|---|---|---|---|---|
| 178711 | My DTI is not as high as it appears!!! | A | $12,000 @ 14% | Jul 30, 2007 | Withdrawn |
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