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In a HARP 2.0 refinance, what is the debt-to-income limitation?

by sara_phillips618 from Boise, Idaho. Jan 13th 2016 Reply


Kerry Greenwald (kerry@creeksidem.com)
#2 ranked lender in Washington - 15 contributions

Sara, great question, however there is more to it than just the DTI, if you would like to call we can answer your questions quickly over the phone. Creekside Mortgage, Inc.360.571.5626

Jan 13th 2016
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,802 contributions

FNMA requires 45% DTI or lower to qualify.. but this I will say.. Don't attempt to calculate your own DTI.. let a mortgage professional do it.. Most folks don't calculate it correctly and typically come up with a higher DTI than what they actually have.. Also, with HARP, there is an exception to looking at the DTI.. If you have a liquid asset account with enough funds to cover 12 months mortgage payments, then the income qualification is waived, meaning your DTI is not a factor. Understand that I have 21 different lenders and only 2 offer this exception, so finding that needle in the haystack will be easier if you contact a mortgage broker who deals with numerous lenders vs. going door to door, from one bank to another looking for that one lender.. 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

Jan 13th 2016
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Larry Gray (lgray_312_247)
#562 ranked lender in California - 1,127 contributions

For the HARP loan we mortgage loan officers run our automated underwriting system per Fannie mae or Freddie mac to determine if you qualify based on what you provide us, including your credit scores. Last time I did a HARP loan the person had more than 55% DTI. My experience previous to that include DTI's over 60%. Thus, I don't know what HARP allows these days but have no reason to believe they might not approve a high DTI loan. It would be well worth your while to have a professional mortgage broker/banker qualify you. I am only licensed to do loans in California.

Jan 13th 2016
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Pete Bass (PeteBass)
#31 ranked lender in Connecticut - 476 contributions

As this is a Fannie Mae or Freddie Mac loan, the automated system that most lender's use will designate the Debt to Income ratio you have is acceptable or not. For further information please feel free to e-mail me at pete.bass@everbank.com

Jan 14th 2016
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