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Looking for a loan, but my debt to income is high at around 50%. Can anyone help with a loan?

by sara.p3771 from Salem, Illinois. Sep 23rd 2016 Reply


Todd Tholl (toddtholl@leader1.com)
#4 ranked lender in Iowa - 238 contributions

FHA will allow debt ratios up to 57%

Sep 23rd 2016
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,571 contributions

Maybe... Standard conforming loans are basically capped at 45%, but loans like FHA loans will allow a higher debt-to-income ratio if everything else looks good. I often times do FHA loans at 50% - 54%. For loans in MN, WI, and SD, visit me at www.MortgagesUnlimited.biz

Sep 23rd 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 8,052 contributions

Much more info needed.. First, I would ask.. Who calculated your DTI? If you did it yourself, then you probably did it incorrectly.. lenders look at minimum payments against DEBT.. so car payments, minimum credit card payments, student loans, Alimony, payments on judgement or tax liens, as well as your new housing payment, etc.. these are all used to determine your debt to income ratio.. we do not use your cell phone bill, utility bill's, health or car insurance, etc.. these are not associated with debt.. so they are ignored.. That being said, if you did calculate your DTI correctly, are you saying it's 50% BEFORE you consider what a mortgage payment would be.. if that is the case, then its highly unlikely you would qualify.. Conventional financing in most cases will limit your DTI to 45% and FHA will go as high as 57%.. If you want to know for sure what you would qualify for, then you should contact 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

Sep 26th 2016
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