Debt to income

[iluvdodgetrx]

What ratio do most mortgage lenders want your debt to income to be before and after the loan?

[Heavanly1]

This depends completely on the lender you are using.

A friend of mine was able to close on her mortgage with a 50% back-end debt-to-income ratio.

I'm also in the midst of purchasing my first home and my lender told me they'd be willing to go up to 50% back-end debt-to-income ratio as well. However, I would not be comfortable with those payments so I sat down, crunched my own numbers, and felt like the best for me would be a front-end debt-to-income ratio of 30% or less and a back-end debt to income ratio of 40% or less.

I suggest you sit down with your budget, figure out what a comfortable housing payment is for your circumstances (including utilities and maintenance), and then work backwards and see the what you qualify for at that monthly payment.

[BrianB_The_Loan_Professor]

they really do not care about before just after the loan

and 50% is a max for many banks however with FHA you can get an automated approval up to 55-57%

but bank overlays will often not allow it

so keep it under 50% total DTI and you should be able to find a bank

[jerrydurden]

FHA 55-57% DTI ratio? For real? Can you take a look at my recent post and tell me what you think are my chances of getting approved with that in mind and for what amount?

Thanks!

[BrianB_The_Loan_Professor]

You may get an automated approval but most banks will not care as they have their own guidelines that say 50% or less

That is where you need to be

There are a few banks that will take it higher but the rest of the file will need to be solid