DTI Question

[Gardenhand]

Hello---recently opened a mortgage which took my DTI to 45 percent. This is using only my base salary without overtime, holidays, etc... Additionally I have help paying my mortgage but it is solely in my name.

I do know what I can and can't afford but my question is what is the max DTI that lenders would accept? My next pay raise is in December which will lower my DTI but only to about 40 percent.

Thanks in advance for any info.

[Appleman]

If you do not have a credit sesame free account, I recommend that you get one as I have found that is the easiest way to see what your actual DTI is on the TU report.

If you look at taxes from your last 2 years, what is the least amount of overtime etc you can account for on your taxes? When applying list your base salary as income and list additional income as the lowest amount of OT etc you earned in the last 2 years. This would be easy to account for based on your Taxes. This should improve your DTI.

Also, depending on your score, you usually do not need to provide POI (proof of income) like for a mortgage. 

[Gardenhand]

Thank you, I do know exactly what my DTI is. Credit Seasame won't count my child support payments because they are not on my credit report however they are taking directly from my paycheck weekly. My overtime has been in a decline the past three years- 2014 OT- 10,000--- 2015 OT- 6,000--- 2016 OT- less then 1,000 so far. However my actual income has increased over this same time period. 

My DTI is pretty simple

mortgage- 1200

child support- 381

minimum CC payments- 02

total debt 1583

income currently

21.12 hourly

3,608. monthly base

44 percent DTI

after raise in december

22.52 hourly

3,903 monthly base

41 percent DTI

However last year I made 55,000 with OT, holiday pay, bonus, sick time cash in etc... Also I have help with the mortgage payment and living expenses which doesn't reflect on my credit reports. I'm confident that I CAN afford a small car loan but I'm wondering if there is a maximum DTI percentage that lenders will accept. Thanks again for the reply.

 Edit- scores are around 760 whith Fico 8.