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What is the maximum dti when purchasing a second home?

by AGrande from Redondo Beach, California. Feb 12th 2013 Reply


Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions

Good Evening/Afternoon! Typical DTI ratios vary based on loan programs, credit scores, and loan to value ratios among other things. You can use 45% as a good base. To get quickly approved for a purchase, it would be easy to do by applying online. Having an Automated Approval only takes a few minutes once a complete loan application is submitted online. If I can of help, please let me know. Thank you!

Feb 12th 2013
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Linda Miller (Linda Miller)
#2 ranked lender in Utah - 572 contributions

You will need a conventional loan for a second home. FHA and VA do not lend for second homes. The debt to income ratio for conventional loans is typically 45%. Your best bet is to contact one of the Lender 411 mortgage professionals. They can look at your situation and give you good advice. Good luck.

Feb 12th 2013
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Andrew Alfonso (CashCow)
#43 ranked lender in Florida - 271 contributions

Good Evening/Afternoon! Typical DTI ratios vary based on loan programs, credit scores, and loan to value ratios among other things. You can use 45% as a good base. To get quickly approved for a purchase, it would be easy to do by applying online. Having an Automated Approval only takes a few minutes once a complete loan application is submitted online. If I can of help, please let me know. Thank you!

Feb 12th 2013
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Steve Azarch (sazarch)
#18 ranked lender in Tennessee - 93 contributions

On a conventional loan you are looking at a 45% dti.

Feb 12th 2013
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Anthony PapaGiorgio (apapagiorgio@inlandbank.com)
#79 ranked lender in Illinois - 16 contributions

Hi AGrande, the benchmark of 45% that everyone is mentioning is accurate. If you would like some assistance figuring your correct dti and seeing how much you can borrow up to then I would be glad to help

Feb 12th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,729 contributions

Today's mortgage lending rules will cap you at 45% debt-to-income ratio...

Feb 13th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

Typically, it is 43%-45%. However, you can go up to 50% with compensating factors like low LTV, strong credit etc, thru Freddie Mac programs.

Feb 13th 2013
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Jason Vondrak (jvondrak)
#221 ranked lender in California - 1,741 contributions

With a conventional loan you can expect the DTI requirement to be right around 45%. You can get a higher DTI with the FHA and VA loan program, but since it will be for the purchase of a second home those loan programs wont qualify.

Feb 13th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

As you can see, the ratio's can vary and there a lot of compensating factors and there are other loan programs available. Contact a Lender411 loan officer to discuss your specific situation

Feb 13th 2013
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Garett Hyman (GarettHyman)
#42 ranked lender in Michigan - 14 contributions

You will find in most cases the max DTI on a second home is 45%.

Feb 13th 2013
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