topic Re: Maximum DTI Question in Mortgage Loans

Maximum DTI Question

Rindy — Thu, 10 Sep 2015 17:59:42 GMT

Hi All,

I am hoping to FINALLY pull the trigger soon on a home purchase BUT I have a question about DTI. Can someone tell me what is the "typical" maximum DTI on a conventional loan? I am assuming FHA ia about 45% but I wasnt so sure regarding conventional.

Thanks,

Re: Maximum DTI Question

Revelate — Thu, 10 Sep 2015 19:32:50 GMT

@Rindy wrote:
Hi All,

I am hoping to FINALLY pull the trigger soon on a home purchase BUT I have a question about DTI. Can someone tell me what is the "typical" maximum DTI on a conventional loan? I am assuming FHA ia about 45% but I wasnt so sure regarding conventional.

Thanks,

Typical maximum is around 43% range; some lenders may be at 36% depending on their requirements.

Re: Maximum DTI Question

StartingOver10 — Fri, 11 Sep 2015 00:43:34 GMT

@Rindy wrote:
Hi All,

I am hoping to FINALLY pull the trigger soon on a home purchase BUT I have a question about DTI. Can someone tell me what is the "typical" maximum DTI on a conventional loan? I am assuming FHA ia about 45% but I wasnt so sure regarding conventional.

Thanks,

And for FHA the max back end ratio is substantially higher than 45%. It is 56.99% but I have seen lender overlays where the max is 50%.

Max conforming conventional is 45% but you get a better idea with this matrix: https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf

I have to see if I can find somthing on non-conforming loans (there is another term for it but it escapes me at the moment)

Edit: Found the term: it is Non Qualified Mortgages. It doesn't mean that the buyer is Non-Qualified, but that the loan doesn't meet the QM criteria. There is a huge market in these types of loans too so don't be afraid to apply to a good lender (not a big box bank).

Re: Maximum DTI Question

Anonymous — Fri, 11 Sep 2015 15:22:17 GMT

Conventional: very safe at 28/36, probably safe at 31/43, really pushing it at anything above 45% backend.

FHA: very safe at 31/43, probably safe at 33/46, really pushing it at anything above 48% backend.

Depending on lender overlays of course.

Re: Maximum DTI Question

Revelate — Fri, 11 Sep 2015 22:25:37 GMT

@Anonymous wrote:
Conventional: very safe at 28/36, probably safe at 31/43, really pushing it at anything above 45% backend.

FHA: very safe at 31/43, probably safe at 33/46, really pushing it at anything above 48% backend.

Depending on lender overlays of course.

Do lenders look much at front-end anymore? None of the ones I talked to in my own mortgage adventure seemed to care, was all about the backend.

Re: Maximum DTI Question

Anonymous — Fri, 11 Sep 2015 22:38:20 GMT

@Revelate wrote:
@Anonymous wrote:
Conventional: very safe at 28/36, probably safe at 31/43, really pushing it at anything above 45% backend.

FHA: very safe at 31/43, probably safe at 33/46, really pushing it at anything above 48% backend.

Depending on lender overlays of course.
Do lenders look much at front-end anymore? None of the ones I talked to in my own mortgage adventure seemed to care, was all about the backend.

Really only if you have no other debt. There's no guarantee a 43/43 would fly for FHA.

Re: Maximum DTI Question

pizza1 — Mon, 14 Sep 2015 15:46:07 GMT

this is great info to know. Hoping to buy in 2 yrs.

Re: Maximum DTI Question

DallasLoanGuy — Tue, 15 Sep 2015 01:40:28 GMT

45 i pretty safe

see a lot of deals go thru around 50%

Re: Maximum DTI Question

Anonymous — Tue, 15 Sep 2015 21:04:42 GMT

I work at a brokerage and we just had one of our lenders move up to 52

Re: Maximum DTI Question

Anonymous — Tue, 15 Sep 2015 21:13:58 GMT

Highest I've ever pushed FHA was 54.something, but it required compensating factors. I don't like going that high though unless I know their income is trending upwards.