300k mortgage hopefully...

[Robert Hastings]

my wife and i are planning our next home. we purchased our first home for 215k about 5 years ago. we put down 20% and we have a mortgage balance now of 159k. our rate was 4.2 five years ago. we have a child now and we are planning more and we are basing our next move to a "forever" type of home in a with a great school system. thats the current direction of how we are approaching our houseing model.

now we have better credit (we are both above 740 and moving higher month by month), we have better jobs and we have more in reserves. Conservatively, if we sell our home for what we paid for it, we will probably walk away with maybe 50k (eventhough we upgraded substatially, im being conservative for my discussion).if my wife and myself add another 50k from our savings, we will have a clean 100k down payment and mortgage 300k. from my research, with good credit, i should expect 485-500/month per 100k borrowed. im assuming a 1500 monthly mortgage payment on a 300k mortgage. real estate taxes in new jersey will push close to 10k annually. maybe 100-125 per month for home owners insurance coverage.

we are waiting until we have all debt paid and savings are ramped up before we sell our house now and buy.

we have a combined income of around 120k. zero CC debt. a car loan. we have some real estate investments that will factor into our DTI.

120k = 9k month gross. assuming a 20% down payment and great credit and high reserves i would expect to get approved with a back end DTI of close to 43% or $3870 per month of total debt liabilities...

3800 should cover 1500/mortgage, 1000/taxes, 125/month homeowners, 400/car, and 400/month real estate investment factors

questions....sorry for the book

1.) what is the highest back end DTI you have seen with a conventional loan assuming great FICO, large downpayment and at least 9 months in reserves??

2.) assuming you had the resources and credit and reserves, would you consider a different loan option other than conventional 20% down? why? 3.) if you had 100k available for a down payment, would you only offer 50k for a downpayment and invest the other 50k in something that would offset the PMI you would be charged for having less than 20%?? ( ahem....im in real estate. there are rental homes you can buy for under 40k that will rent for 6-700 and clear almost 400/month which will cover the cost of the PMI that i would assume if i didnt have 20%. but then again, if i buy another real estate investment, the investment's taxes and insurance will contribute to my DTI....dam!)