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debt to income ratio is 43% is that too high for a mortgage

by thomasbrandon092209 from Lakewood, New Jersey. Jun 10th 2015 Reply


You should be fine as long as all debt on your credit report is being calculated in that 43% along with principal, interest, taxes and insurance of home you are looking to purchase. I'd beHappy to take a look and run someNumbers. Absolutely free and zero obligation for me to do so. I am a banker up here in Westfield. Milllenium Home Mortgage. You can reach me at 908-303-1367. My name is Scott Singer. NMLS#931397

Jun 10th 2015
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Ted Ark (tark@goldmortgage.com)
#31 ranked lender in New Jersey - 32 contributions

Thomas, If your debt to income ratio is 43%+, a Fannie/Freddie approval would hinge on compensating factors of your loan profile. i.e. down payment, credit score, asset reserves after closing, job stability. If you are a business owner, there are portfolio mortgage programs which would allow for higher debt to income ratios based on credit scores 640+ and strong asset base. Ted ArkGolden Mortgage Corptel: 908-722-9217Bridgewater NJ NMLS#27281licensed NJ and NY

Jun 11th 2015
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Ed Groussman (Egroussman)
#52 ranked lender in New York - 14 contributions

43% DTI usually results in conventional or FHA approval. Feel free to contact me if you would like me to further determine your loan eligibility.ThanksEd

Jun 11th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,452 contributions

In theory, yes, 43% should be fine for almost all loans. Fannie Mae and Freddie Mac are currently capped at 45%. Side note, this will be dropping to just 43% in the near future.

Jun 11th 2015
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,106 contributions

That depends, 43% works for most loan qualifications for conventional and FHA. Debt to income ratios can go higher and much higher with FHA and VA depending on the situation. As long as the rest of your stuff is good, like credit, job stability, assets you should be good. Best wishes, Sean

Jun 11th 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,802 contributions

No.. FHA allows up to 56%, Conventional allows up to 45%. As Joe said, this is about to change in the near future, making it even more difficult to get a loan.. if your seriously interested in purchasing something, I wouldn't wait.. 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 11th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

partly depends on whether that is based on your gross income or net - gross is what counts. Also, if that is your current debt it will limit how much you can borrow. Good luck!

Jun 11th 2015
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Chris Neuswanger (mtnmortgageguy)
#94 ranked lender in Colorado - 84 contributions

That should be workable as long as your credit history is satisfactory. I assume you have had a mortgage professional calculate your DTI and tell you this. If not, you need to have a mortgage lender look at it, sometimes lenders count certain payments differently, such as a installment account with less than 9 payments left can often be left out of the ratio. The lender may count your income differently than you would yourself, and it might be higher or lower. Income from reimbursement for mileage or other job expenses is generally not counted.If you are in Colorado please contact me at Macro Financial Group at 970-748-0342

Jun 12th 2015
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