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What is considered a high DTI, and how is it calculated?

by munoz_t431 from Allyn, Washington. Apr 8th 2016 Reply


Lorne Harvey (lorneharvey)
#80 ranked lender in Washington - 431 contributions

High DTI's are different for each of the 4 major loan types, VA, USDA, FHA and Conventional. I would be happy to discuss this with you, as I am licensed in WA.Please reach out to me and I'm happy to help.

Apr 11th 2016
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#1 ranked lender in Florida - 796 contributions

Max DTI is 50% conventional, 55% ish FHA and 60% ish on VA. Total debt divided by Gross income...

Apr 11th 2016
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

Different lending programs all have different allowable Debt to income ratios.. but generally fall between 45% to 56%.. Calculating DTI should be left to the pros.. but in general, DTI's look at the new housing payment as well as minimum payments on credit obligations.. credit card payments, car loans, student loans, etc.. but ignore your monthly "Bills".. car insurance, electric bills, cell phone bills.. these are ignored since they are not considered payments on debt. There are other guidelines that address child support, alimony, deferred student loans, payments on back taxes, or projected payments on unpaid collections, etc.. But again, you should leave the calculations to the pros.. 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

Apr 11th 2016
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