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can lenders compromise on debt-to-income ratios for FHA mortgages?

I'm expecting some career advancement in the next year or two but my debt-to-income ratio will most likely exceed FHA requirements until then by JPinkm_672_962 from Tijeras, New Mexico. Sep 13th 2012 Reply


Brian Bagon (bbagon)
#3 ranked lender in New Mexico - 4 contributions

When you say compromise I am assuming you mean flexible. Yes, your debt ratio is trully flexible with FHA. Lenders typically submit the loan and get a automated approval. This automated system looks at various factors on a loan request and will sometimes go above 50% debt ratio. If you have any more questions, please call me. I am a local lender in Albuquerque. And i live in Tijeras as well.

Sep 13th 2012
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Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions

Until your DTI is within acceptable limits your not going to be able to get the loan...between 30% and 50% is where you need to be and that is including your proposed mortgage payment.

Sep 13th 2012
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Peter Botros (PeterBotros)
#71 ranked lender in New York - 895 contributions

You can sometimes exceed 50% DTI with some compensating factors. I have had a purchase approved with a 52% DTI. It can be done!

Sep 13th 2012
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Kelly Krauth (KKrauth)
#1 ranked lender in New Mexico - 28 contributions

You can usually exceed the standard DTI qualifications with compensating factors. As a Fannie Direct Lender, I do not have the overlays for DTI as most lenders do. So if the automated system allows you to exceed the limits, then I do as well. Your question does not indicate whether it is a purchase or refinance we are talking about. If you are refinancing a FHA mortgage, you can always do a streamline refinance as well. I hope this answers your questions and I live and work in Tijeras and Edgewood. Call me this evening if you would like to elaborate more at 505-286-3071.

Sep 13th 2012
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Barb Lanis (BarbLanis)
#71 ranked lender in Illinois - 663 contributions

Your DTI income ratios are all about the here and now from an underwriter's perspective. If you're not in the range right now, you will need to wait.

Sep 13th 2012
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Linda Miller (Linda Miller)
#2 ranked lender in Utah - 566 contributions

Sometimes if you have compensating factors - such as excellent credit, substantial assets - then the Desktop Underwriting software program will approve a loan with a slightly higher DTI. I have seen 52 to 53% approved through with Desktop Underwriting. When that happens usually the underwriter will accept the higher DTI. Your best bet is to contact a mortgage professional in your area to help you lay out a plan. Good luck.

Sep 13th 2012
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