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Will lenders make exceptions to the DTI requirements for FHA loans?

I have excellent credit and a stable job but my total debt to income ratio might be too high to qualify for the loan I'm seeking. Any ideas? by CGraff from High Point, North Carolina. Dec 20th 2012 Reply


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

Well since you didn't state what your DTI is, it's anyone's guess.. All FHA loans go through an automated underwriting system.. We have seen DTI's as high as 56% get approved.. But the overall portfolio is considered, not just DTI.. Credit score, reserves, job time etc.. All play into how high your acceptable DTI could be for DU approval... The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower 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. 480-287-5714 WilliamAcres.com

Dec 20th 2012
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,300 contributions

Sure, I have an idea. Since every loan is approved using only one factor, like "My DTI is high" [sarcasm], you can provide more information, like my DTI is 72% can I get a loan? Better yet, work with a Mortgage Professional and provide them with ALL of your information so they can actually determine what your DTI really is. If it really is high, what compensating factors you have to help overcome it. If it really is high and yo don't have compensating factors to overcome it what else can you do to make your dream a reality? With all the facts most anything is possible. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Dec 21st 2012
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Mac Church (MacChurch)
#53 ranked lender in Virginia - 10 contributions

There are many ways to reduce your debt to income to increase your purchasing power. I'd be more than happy to help you.Please email me at mac.church@Lionbank.com and I'll see what I can do for you.RegardsMac

Dec 20th 2012
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

As long as you are receiving a DU Approval you should be able to find a lender to finance your loan.

Dec 20th 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

As William Said, many factors will play into whether or not your DTI will be acceptable. With good compensating factors, I have seen a DTI of 56% get an approval. Good Luck!

Dec 20th 2012
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Chris Samples (csamples)
#141 ranked lender in Texas - 82 contributions

Hello CGraff. Exceptions, in their conventional sense, are not typically made on FHA loans; but this does not necessarily mean that you will not qualify with a higher than average DTI. FHA loan approval is an algorithmic evaluation of your overall borrower profile; meaning that strengths in certain areas can often compensate for weakness or overage in others. Your excellent credit and stable employment are strengths that will definitely work in your favor; but, like "mortgagesofamerica" mentioned below, a complete loan application must be submitted to an automated underwriting system (DU) for decisioning and conditional requirements. If the automated system gives an approval, you are good to continue with the loan. To discuss your situation in more detail and determine how best to proceed, please call (512)919-2401 or visit my website at www.chrissamples.com. Thank you and Happy Holidays.

Dec 20th 2012
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

As you're seeing above, it depends on the details. 55-56% of gross income is workable for a reasonably strong buyer. And there are ways to help keep your DTI low, such as borrowing from your 401k to pay off a loan. Typically 401k loans don't count in your DTI. I'd be happy to lookat some options for you.

Dec 20th 2012
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