topic Re: max dti for fha in Mortgage Loans

max dti for fha

kaylord84 — Mon, 04 Aug 2014 15:18:56 GMT

I chatted with a quicken loans rep whi stated thet the max back end for fha is 56% any truth to this ? I thought the dti ratios were 31/43!

Re: max dti for fha

kaylord84 — Mon, 04 Aug 2014 18:55:07 GMT

Bump

Re: max dti for fha

Anonymous — Mon, 04 Aug 2014 18:59:54 GMT

It is my understanding DTI can be exceeded for extenuating circumstances. Just be careful with Quicken, they are getting better but they offer everyone a preapproval then don't follow through with an approval.

Re: max dti for fha

smith5879 — Tue, 05 Aug 2014 00:29:32 GMT

The maximum DTI for FHA is 56% with compensating factors. My DTI is around 51% on my FHA loan. Not all lenders will go that high though. I got pre-approved with 4 different local lenders (and inquired about DTI limits with several others) and only one of them would go high enough on the DTI for me to get into the price range I wanted. In my experience, many have overlays that top out at 50% or even less.

Re: max dti for fha

StartingOver10 — Tue, 05 Aug 2014 01:55:53 GMT

Actually the max back end ratio for FHA is 56.99%

Re: max dti for fha

kaylord84 — Tue, 05 Aug 2014 12:35:42 GMT

Wow thanks i was considering quicken because the offered closing cost cutter (closing credit) but i will check out other lenders

Re: max dti for fha

ShanetheMortgageMan — Fri, 08 Aug 2014 07:59:23 GMT

@kaylord84 wrote:
Wow thanks i was considering quicken because the offered closing cost cutter (closing credit) but i will check out other lenders

All lenders offer that.

Re: max dti for fha

juggalo9er — Fri, 08 Aug 2014 12:33:55 GMT

@Anonymous wrote:
It is my understanding DTI can be exceeded for extenuating circumstances. Just be careful with Quicken, they are getting better but they offer everyone a preapproval then don't follow through with an approval.

+1 quicken did this to me

Re: max dti for fha

kaylord84 — Fri, 08 Aug 2014 14:11:22 GMT

Didn't know all lenders offer a credit. Another question my ytd on my 2013 last pay stub is higher than the amount on my w2 box 1. Box 5 is about the same as the last check stub. Which amount will the lender use for qualifying?

Re: max dti for fha

ShanetheMortgageMan — Fri, 08 Aug 2014 16:56:41 GMT

@kaylord84 wrote:
Didn't know all lenders offer a credit. Another question my ytd on my 2013 last pay stub is higher than the amount on my w2 box 1. Box 5 is about the same as the last check stub. Which amount will the lender use for qualifying?

Yup, to get the credit you just need to take a higher rate than you would get if you didn't want to get a credit.

Are you paid salary or hourly? Do you get commissions, bonuses and/or overtime?

Re: max dti for fha

kaylord84 — Sat, 09 Aug 2014 19:58:20 GMT

I'm hourly paid. I get overtime with a pension retirement plan which is why the amounts are different.

Re: max dti for fha

ShanetheMortgageMan — Sun, 10 Aug 2014 18:37:42 GMT

So for hourly, if you work 40 hours a week... it'll be (your hourly rate x 40 hours x 52 weeks / 12 months) = monthly base income.

For OT it'll be a 24 month average.

Then pension retirement usually doesn't count as income if you are still employed by the company, although the specifics of it would need to be known.

Re: max dti for fha

kaylord84 — Sun, 10 Aug 2014 18:53:04 GMT

Im paid biweekly, pension deduction is biweekly from my gross pay @ a fixed percentage

Re: max dti for fha

ShanetheMortgageMan — Tue, 12 Aug 2014 04:36:47 GMT

Ah, it's a deduction, I thought you were getting paid your pension before you retired... that would be odd. The deduction won't reduce qualifying income then.

Re: max dti for fha

kaylord84 — Tue, 12 Aug 2014 04:58:21 GMT

Ok thanks