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Good debt to income ratio for jumbo loan?

What deb t to income ratio should I aim for..I am looking for a jumbo loan in the Michigan area by sydfly2309482340 from Cloverdale, Michigan. Mar 13th 2015 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

Typically, if your at 43% or lower, you should be fine.. but understand that there are no "Conforming" guidelines for Jumbo loans.. each lender offering jumbo financing can have their own set of rules, so be prepared for that.. Also understand that when it comes to calculating your debt to income ratio (DTI), lenders look at the minimum payments associated with your outstanding debt for ratios calculations.. Car payment, mortgage payment, student loans, credit card's etc, etc.. these are examples of your "Debt" and this is what the lender looks at.. Now there's a big difference between debt and bills.. only debt is considered for qualification, not your monthly bills.. (Ie. car insurance, health insurance, phone bill, cable, utilities, etc.. ) These are not considered when determining your ratios.. 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

Mar 13th 2015
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Gus Dahlgren (gdahlg_811_422)
#34 ranked lender in Michigan - 47 contributions

In most cases we can go up to 43% DTI. I'm located in East Lansing MI. Please call for more information. Thanks Gus Dahlgren 517-489-2440

Mar 13th 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

Agree with William above, generally 43%. Remember, it is based on your gross income - not take home. The stronger your application and the larger your downpayment the more flexibility - but usually not over 43. If you have a large downpayment sometimes it makes sense to pay off other debt to lower the DTI.

Mar 13th 2015
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Dan Paladin (dpaladin)
#2 ranked lender in California - 417 contributions

As pointed out here, 43% DTI is the typical max for a Jumbo a few portfolio lenders will go higher. Good luck...

Mar 13th 2015
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,106 contributions

Usually you will need to stay below 43%, some lenders can go up to 45% and even a couple who can go to 50% on specialized programs with a hefty down payment, credit score and reserves. There are even some programs out there where you can qualify based on your assets alone or 12 months of bank statements. However, you will pay a much higher interest rate and closing costs for these type of Non QM loans. If you can it's best to keep your DTI below 43%. I would speak with a local loan officer and have them review your information so they can present you with all of your available options. Best wishes, Sean

Mar 14th 2015
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Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

As a rule of thumb 43% is your MAX. DTI on a Jumbo Loan.

Mar 14th 2015
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