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Is there any kind of debt that is not included in my DTI, like school loans or medical bills?

by jackson3575 from Billings, Nevada. Dec 6th 2017 Reply

Brad Henderson (bradthelender)
#28 ranked lender in Nevada - 25 contributions

Medical bills are ignored for DTI purposes. Student loans have different requirements depending on whether the loan is FHA, VA or conventional. Those products also have different DTI thresholds. What we count against your DTI is most items on credit, anything real estate related and any legal obligations like child support or IRS payments. I am happy to run some numbers for you if you would like. Brad Henderson 702-328-3043 NMLS 16484.

Dec 7th 2017
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Most people who try to calculate their DTI will do it incorrectly and come up with a higher number than your actual. You should let your loan officer calculate it for you.. In general, we only count minimum payments on DEBT.. credit cards, car loans, student loans (calculation vary's based on loan product), etc.. are all considered including your new mortgage payment and any association fees or dues.. Also, if you are responsible to pay alimony or child support, we have to include those payments as well. .but some lenders allow us to reduce your monthly income by those payments rather than adding it as a debt.. For most loan products, we do not include utility bills, cell phone, insurance, etc... (VA requires a minimum amount of residual income to pay for things like utilities, and it's based on the square footage of the property) Also, certain lending programs require that we add a percentage of outstanding collection accounts and add a "Phantom" payment to your ratio's for qualifying purposes.. but Medical collections are not included in these types of calculations.. As you can see,,, I've only scratched the surface.. DTI calculations are best left to the pro's.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Dec 8th 2017
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