Super Contributor
ShanetheMortgageMan
Posts: 7,730
Registered: ‎09-28-2007
Re: DTI Ratio and Reserves When Applying for a Mortgage

FHA prefers 31/43% ratios, but up to about 45% & 57% can qualify.  USDA prefers 29/41%, but up to about 38% & 49-50% can qualify with good credit & some reserves.  VA prefers 41%, but even into the 60's can qualify, although most lenders cap out at about 50-55%.

 

Fannie Mae can approve up to 49.99%, Freddie Mac can approve up to 55%, but anything above 45% requires excellent credit & a lot (6+) of reserves.