Some house hunters will find themselves considering a house that they can see themselves calling home, but when you check the property tax rate of that area you come to find out that its surprisingly higher than the norm. This can increase your payment therefore; increase your debt-to-income ratio. Your debt-to-income ratio or DTI is one of the most important factors  used by lenders to determine if you are able to afford the payment. It’s the percentage of your debt in relation to your income. For example, if your gross income is $1,000 and your total debt is $500 per month then your debt-to-income ratio will be 50%.

Well, you absolutely love this house and you are willing to cut down on other costs to compensate for the increase in payment, but now you have a high DTI ratio to deal with which is keeping you from qualifying. What now?

I’m pleased to announce that we are able to qualify you based on a 1.25% property tax rate regardless of the actual rate which will allow you to close your loan move into your home in as little as 30 days. This is a niche solution that we offer to our clients and as proven to be a great asset for home-buyers.

Time for the disclaimer… your tax rate will be based on the area or community not on 1.25%. One way you can check to find out what your tax rate would be is by going to the county’s tax assessor’s website and using their calculator to figure it out. For San Bernardino County you can visit www.mytaxcollector.com and navigate to the “Estimate your new tax bill” link. Fill in the blanks and wah-la, you got your tax rate. Another way would be to email me the address and I can pull a Tax Roll from our partner title company which will list all the info that is needed to determine your total tax rate including any mello-roos and assessments.