Credit Card Center Advertiser Disclosure

New Contributor
Posts: 57
Registered: ‎06-13-2011
0 Kudos

DTI appears to be high, but really isn't. Can I get approved?

The mortgage is in my name only, even though my fiancee pays half every month.  But since it's only in my name, my DTI appears to be 45% (and that's without a car payment!)   In reality, my DTI is more like 30% because I don't pay the full mortgage.  Credit score is around 680.  I'm just wondering if anyone will even approve me?  My score is fine, but I'm sure the high DTI will cause a red flag. 


It sure would be nice if I could count my fiancee's half of the mortgage as income, but if they ask for income verification obviously they'll see that the numbers don't match.  What to do, what to do....

Posts: 10,804
Registered: ‎03-06-2010
0 Kudos

Re: DTI appears to be high, but really isn't. Can I get approved?

Actually your DTI is high at 45% without a car payment. Not that it looks high, it is nearly half of your gross income which doesn't leave much for anything else. And according to your post, you are 100% responsible for the payment.


The fact that your fiancee contributes to your household income is not a factor because if s/he were to leave or become unemployed, then you still would be on the hook for 100% of your mortgage payment plus whatever auto payment they issued. The auto payment then becomes at risk so the CU is looking at the risk associated with making a loan to anyone that has used up nearly half their gross income already.


The CU is being prudent. Personally, I think the CU is looking out for your best interest. They don't want to bury you in a payment you can't make over the entire term of the loan.


You can do the following to change the result:


1) Increase your income and/or reduce your current expenses

2) Add another borrower with additional income to the loan

3) Look for a smaller loan or cheaper vehicle

4) Buy a cheap vehicle for cash while you work on increasing your income.


Maybe your fiancee ought to consider getting the vehicle loan in her name if you can't do any of the above right now. Good luck.





New Contributor
Posts: 57
Registered: ‎06-13-2011
0 Kudos

Re: DTI appears to be high, but really isn't. Can I get approved?

I understand that on paper, yes... it looks like I have no business taking on a car payment with 45% DTI. But in reality it's more like 30% DTI since my fiancée and I split the mortgage. 30% isn't that bad and I'm sure I'd get approved with that if that's how it appeared. But unfortunately for me, it does show 45% because they can't take into consideration that she pays half of the house payment. It just stinks because I can most definitely afford a car payment... again, 30% DTI is very manageable. But its going to be difficult for a lender to look past the facts, I'm sure.
Senior Contributor
Posts: 3,070
Registered: ‎11-02-2009
0 Kudos

Re: DTI appears to be high, but really isn't. Can I get approved?

Why can't you and your fiancée apply for the car loan together?  That way her income is considered.  Even if she has credit issues, there are some auto lenders that will take the best score between the two as opposed to mortgage lenders which always take the lowest mid-score (at least that is what I have read on here).

Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720

Take the FICO Fitness Challenge

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.