Credit Card Center Advertiser Disclosure†
11-29-2010 03:35 PM
Does anybody know what the max DTI for an FHA loan is? We are currently trying to seek a second home (we will rent out our first) and we've been told that 53% DTI could still get you qualified for FHA. Is that possible and do you know the max?
11-29-2010 04:12 PM
43% is the max guideline. ANything above that is an exception based on compensating factors. Is 53% possible? Yes. Is it normal, no. For 54%, they are going to be looking for great credit history, decent equity in both properties, strong reserves, and using the case of undocumented rental income as a compensating factor...
In other words, if you have a really strong file it may get approved. If the file is middle of the road or borderline, chances go down greatly. Since cases like this are bank by bank and case by case, there is no way to give you a strong indication of what your approval chances are, but equity, FICO, Down Payment, job history, and reserve information would be needed to even make a estimates guess.
11-29-2010 04:19 PM
Just a notation that the rental income must show on your tax returns, and until it does it will not be considered a rental and the present mortgage would count towards the DTI.
11-29-2010 06:56 PM
doesn't fha consider both front end and back end? IIRC it's 31 for the front
11-30-2010 02:15 AM
56.99% is the highest total debt ratio I've seen get approved by automated underwriting recently, 45.99% is the highest housing portion of the debt ratio. Anything over 45% should be well qualified, meaning good credit and having several months of the housing payment in the bank available after closing.
12-02-2010 08:22 PM
I have a related question for you. You mentioned on a different thread that your score changed when an account was in dispute:
So you were actually able to get approved with an open dispute on your credit reports? That goes against conventional wisdom, and the experience of most people on these boards.
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.
* 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.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com 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.