Forgotten Your Password?

Need to Register?

Question Icon

If my DTI is too high, does that preclude me from obtaining a loan?

by sheila.dobbs271 from Alpine, New Jersey. May 5th 2016 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,927 contributions

Much more info needed to answer your question.. First, you should leave the DTI calculations to your lender.. Most folks do not calculate it correctly.. We look at your MINIMUM payments associated with DEBT.. so the new housing payment, including taxes, insurance, HOA or association fees, cap improvement fees, etc.. along with revolving debt payments and installment debt payments (cars, boats, student loans, etc.) We do not include your monthly reoccurring bills.. so cell phone, cable, car insurance, utilities payments, etc.. are ignored.. Also, if you have any legal obligations such as child support or alimony, that will also be included in your DTI.. and if you are retired or on disability, then guidelines allow us to increase your effective income for qualifying purposes since your SSI or SSD is "After" tax, and DTI is calculated on "Before" Tax income.. Again, there are many things to consider, but this is basic stuff.. As far as allowable DTI.. for conventional, 45% is the maximum.. no exceptions.. for FHA, it can be as high as 56%.. If you want to know for sure if you qualify, the you should try contacting a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and 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 NMLS# 226347

May 5th 2016
1
0

Depends on how high

May 5th 2016
0
0
James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

I work for PNC Bank: Give me a call Let me see how the numbers look like? Jim Mazzola 732-501-4249

May 6th 2016
0
0
James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

I work for PNC Bank Give me a call. Let me see hot the number look? Jim Mazzola 732-501-4249

May 6th 2016
0
0
Subscribe to our news feed.