We are planning on starting new construction in April 2014, granted we sell our current home. We have been using a DTI of 45% when calculating the max allowable PITI payment. We plan on going conventional with 5% to 7.5% down, maybe 10% depending on the outcome of selling our home. I have been reading about the new guidelines thanks to Dodd-Frank, that decrease the 45% max DTI to 43%, and will need to rework my analysis if so since the house we want would put our DTI at 43.3%. Does this new guideline apply to conventional mortgages?
