What determined my credit amount?

When you're approved, the credit amount you see isn't a fixed, one-size-fits-all number - it's calculated to fit your specific situation. Because your Titus loan is repaid when your home sells, the amount we can extend is tied closely to what we can reasonably expect to be available at closing. This article gives a high-level look at what goes into that number.

What we consider

A few things work together to determine your credit amount:

Your home's value. Your loan is backed by the sale of your home, so its value is the starting point for how much we can support.
What's already owed against your home. Your existing mortgage balance and any other loans secured by your home, such as a HELOC, have to be paid off first when your home sells. Those obligations reduce the proceeds available at closing, which in turn affects how much we can lend.
Your credit profile. Your credit history helps us set a credit amount and terms that are a responsible fit for you.
Program limits. Every loan has a maximum amount threshold.

Your credit amount is the result of these factors considered together as a whole in underwriting.

Keeping your loan within a responsible range

One of the most important checks we run is making sure the total credit amount owed against your home does not become unmanageable. This is sometimes called a loan-to-value, or "LTV," check.

Here's the idea in plain terms: when your home sells, the proceeds have to cover everything owed against it such as your existing mortgage, any other loans secured by your home, and your Titus loan. If the combined total climbs too high relative to your home's value, there may not be enough room at closing to repay everyone comfortably. To protect both you and us, we try to keep that combined total within an acceptable range.

Because of this, your approved credit amount is the lower of two things:

The maximum you're otherwise eligible for, and
The largest loan that still keeps the total owed against your home in our allowed range.

In practice, this means that if you already have significant debt against your home, your loan may be set below your program maximum. This is not because of anything about you specifically, but because the equity available at closing is what ultimately supports repayment. If most of your home's value is already committed to an existing mortgage, there's simply less room to work with, and we size your loan accordingly.

Why we do it this way

This approach is designed to keep your loan responsible and repayable. It helps ensure that when your home sells, there's enough to cover your obligations without putting you in a difficult spot at the closing table.

Questions?

Please reach out to support@gotitus.com and we'll be happy to answer any questions.