Mortgage Loans

[foles28269]

Does anyone know what the required DTI for FHA is?  28/36?? or is it all depending on other factors?

[mortgageguy]

29/41 is generally considered acceptable, however other factors can come into play that allow for some adjustment to the consumers benefit. I have done VA loans, that normally max out at 41, as high as 47% with approval through an automated underiting system/manual underwriting review.

The consumers willingness to work with the lender go a long way

[DallasLoanGuy]

28/41 is the old guidelines.

In 2005 we got a tax break and FHA saw that borrowers had more buying power. So, they raised that to 31/43.

These are pretty strict guidelines on a manual underwrite. However, if you get approved thru Automated Underwriting then the computer will consider you at higher ratios.

I have seen 36/50 approved lately. <= As you can imagine, people who get approved at the higher ratios have strong files. (Good reserves and/or credit scores)

[iwannahouse]

I'm not sure exactly, but we were able to get approved through FHA with a very high DTI-- we were unable to use some of DH's income because of length of employment, and without that income, our dti was pretty high...  Not sure the exact amt, but WITH the income it would have been around 40%, so I know we were over 50%.  But, we have very good scores, and quite a bit of reserves in my retirement act.