Reply
Established Member
Posts: 30
Registered: ‎06-27-2012
0

DTI ratio

What bills are used to determine the DTI?  I have a car payment and one credit card That shows up on my credit report.  Then I have the usual rent, utilities and such.

Valued Contributor
Posts: 1,146
Registered: ‎11-30-2012
0

Re: DTI ratio

Basically anything that you're obligated to pay, so things like utilities don't count because you could technically cancel them at any time. They just go by whatever minimum payments appear on your credit report, but you're supposed to also disclose any other obligations you have tha don't appear (like payment arragements for a judgment or tax lien). They won't count your current rent, but they will count whatever the new mortgage payment (including principle, interest, taxes, insurance) will be.

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: DTI ratio

+1, it is also known as the back end ratio and usually lenders want it to be 41-43% max, but it depends on the loan product.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Contributor
Posts: 127
Registered: ‎12-11-2012
0

Re: DTI ratio

What is front end ratio?
Valued Contributor
Posts: 1,146
Registered: ‎11-30-2012
0

Re: DTI ratio

Front end ratio is the PITI (principle, interest, taxes, insurance). The guideline is usually 31% of your monthly income, while back end (PITI + all other monthly debts) is usually 43%.

Valued Contributor
Posts: 3,302
Registered: ‎06-09-2010
0

Re: DTI ratio

While what Mike said is true it also depends on the loan program.

Different requirements for different types of loans.
Good Luck
May all your dreams and wishes become a reality!
Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

Re: DTI ratio

Right. And the front and back end ratios are computed using your gross monthly income before taxes. Each lender has their own guidelines on what the max ratio should be.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014

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

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). 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.