Specific DTI question

Anonymous · ‎07-13-2009

I am going to buy another house and rent out my current house. I know I need 30 percent equity to use rental income so that is out. What I wan to know is about front end ratio. When I calculate this percentage and it says "Monthly payment etc..." Do both houses go in the Front end DTI, or is my current mortgage PITI considered a debt in the back end ratio?

Anonymous · ‎07-13-2009

it is all front end. Front end is mortgage related debt, back end adds in other loans/credit lines.

They will allow over the front end % if the file is strong.

DallasLoanGuy · ‎07-13-2009

New mortgage piti is front end ratio

all other debt, including old mortgage is back end ratio

Retired Lender

Anonymous · ‎07-13-2009

That clears it up....... :/

DallasLoanGuy · ‎07-13-2009

too bad we don't have the option to add a poll

Retired Lender

Lel · ‎07-13-2009

DallasLoanGuy wrote:

too bad we don't have the option to add a poll

I vote for your answer.

Anonymous · ‎07-13-2009

I am sure DLG is correct. I assumed that all mrotgage debt wouldbe counted under mortgage debt. He would no more than me.