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best DTI for a VA mortgage? what is the minimum please

i don't know what my DTI is but i'd like to know the minimum accepted by most VA lenders. i'm nervous about mine.

by sgtriznack786423720 from Puyallup, Washington. Jun 27th 2014 Reply


Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,237 contributions

There isn't a firm maximum, it really depends on the details of your application. Some lenders have their own cap of 50% but I've seen approvals of up to 60% in some rare cases. You need to pick an experienced lender and ask them to calculate it for you, most borrowers don't do their own calculation in the same way a lender will. I can help: pdumouchel@primelending.com or 843-619-6025 http://pdumouchel.primelending.com **PrimeLending was #4 purchase mortgage lender in the US in 2012 and 2013 as determined by MarketTrac(c) for Jan-Dec 2012 & 2013

Jun 27th 2014
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Dave Skow (daveskow)
#1 ranked lender in Washington - 184 contributions

most lenders will use what are called the " DU findings " to approve or decline the file .. these are the results from an automated underwriting that your file is sent through . Many loans with higher than normal ratios are approved via this system ....so you might ask your lender what your DU findings indicate the normal debt to income ratios can vary from 43% to 45% to higher depending on lenders / programs / etc...

Jun 27th 2014
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Eileen Hebert (EHebert)
#65 ranked lender in Washington - 9 contributions

Hello,The general VA Debt-to-Income ratio is 41%, however with compensating factors you may exceed the 41%. Hope this helps,Eileen

Jun 27th 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,550 contributions

Since every loan scenario is different, no one here can tell you what the required number is.. but this I can say.. typically, most folks don't understand how the lender calculates DTI, and therefore miscalculate, so it's best you leave it up to your lender to come up with the number.. Lenders use GROSS income, not take home pay, and they look at the minimum payments on your DEBT, not your monthly bills (utilities, insurance, cell phone, day care, etc.. are not calculated into DTI), and if you have any court ordered payments such as alimony or child support, and they also include the new housing payment.. Most lenders can do this for you at no charge and only takes a few minutes.. so pick up the phone and contact a LOCAL mortgage broker and apply with them. By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jun 27th 2014
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Joe Metzler (JoeMetzler)
#2 ranked lender in Minnesota - 3,852 contributions

DTI, or debt-to-income ratio is looked at two ways. The first is the housing ratio, or what percentage of your income would be spent on just the home itself. The next one lenders look at is your overall debt ratio, which includes the new house plus car loans, credit cards, etc. Most people focus on just the overall debt ratio, but lenders look at both. You may see this expressed as something like 31/43. The first number being the housing only, and the second one being the overall debt ratio limit. VA loans, just like most other loans allow for a variance in what you may qualify for based on your overall picture. Someone with low credit scores and no money may be restricted to a lower debt ratio, while someone with good credit scores, a big down payment, and plenty of money left in the back can usually go higher. Stop wondering and worrying. Just contact a local mortgage broker in your area and find out for sure. www.VA-IRRRL-Loan-MN.com

Jun 28th 2014
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Carl Self (caself)
#98 ranked lender in Washington - 25 contributions

VA has a standard guideline of 41% total debt ratio and also has residual income requirement based on your family size. The 41% total debt ratio can be higher based on the lender guidelines as well as the automated underwriting findings. There are too many variables to give a solid answer without a conversation and investigation of your needs, wants, situation and goals. Feel free to call or email me at 206-307-2754 caself1@gmail.com

Jun 27th 2014
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,819 contributions

If the lender receives automated approval, I have seen the housing ratio as high as 42% and the combined or total ratio as high as 58.5%. Ratios are based on the borrower's gross income and the more compensating factors you have the better. The higher the credit score, the more you have in bank deposits (reserves) will likely get you higher ratios approved than with lower scores or minimal reserves. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona and Washington ~ www.LoansA2z.com ~ 888-889-9950

Jun 28th 2014
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,112 contributions

Your best bet is to contact a local loan officer, do a loan application and give them your paystubs, tax returns and w2's and have them give you a solid answer to what your DTI is and how much of a home you are approved for. Best wishes, Sean

Jun 29th 2014
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John Burke (jburke)
#30 ranked lender in Texas - 201 contributions

Hi Sgtriznack, Thank you for your service. Most lenders have an overlay of anywhere from 45% to 55%. This means even if you get approved through an AUS (automated underwriting system) with a higher debt to income ratio, the lender will not approve the loan if the ratio exceeds their overlay. I have a VA client approved right now with a 61% debt to income ratio but it's not something I would recommend for everyone. Please feel free to contact me for more information or help. John Burke | Senior Mortgage Banker | Great Plains National Bank | http://www.valoansdoneright.com | (877)228-9069 | Lending in all 50 states |

Jul 11th 2014
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