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DTI on an auto loan with a joint mortgage

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DTI on an auto loan with a joint mortgage

I’m currently in a lease which is ending at the end of the year. I’ve begun to shop around for rates as a backup Incase I don’t like the terms my dealership offers (Chrysler- it’s a Jeep) all 3 Fico scores are between 740-750’s. I’ve applied with 2 local credit unions who have both come back saying my DTI ratio is over 50% because they are including the entire amount of my joint mortgage. When I got this car we didn’t have a mortgage, we were renting so I haven’t run into this issue. I have read on other forums that dealerships typically divide a joint mortgage in half which is what I was expecting, and that half is included in my DTI ratio. If it is done that way, I’m at 35% including the amount of the loan I would be getting and my other monthly obligations. If anyone has experience with this and can confirm this is how most dealerships calculate DTI with a joint mortgage that would be great, Thanks in advance!
Message 1 of 6
5 REPLIES 5
Super Contributor

Re: DTI on an auto loan with a joint mortgage

Other may chime in but I believe a joint mortage means both parties are resonsible for the full amount so I think your DTI is correct as they said.

10/11/2019: FICO 841 EQ 838 TU 850 EX
Message 2 of 6
Senior Contributor

Re: DTI on an auto loan with a joint mortgage

I've never had a mortgage so I don't know directly but I do know 2 people who were denied car loans due to mortgage DTI issues and they were joint mortgages.

 

Even 35% is pretty hefty considering that anything over 40% is "high risk" to some lenders.

 

The 2 people I know who were denied ended up getting predatory auto loans and were not happy with the outcome/payments.

Message 3 of 6
Valued Contributor

Re: DTI on an auto loan with a joint mortgage

My 30 yrs of lending says yes they WILL hit you with the Full mortgage payment in qualifying for the car. This is standard Underwriting.
Apparently who ever you own the house with is not someone you would own a car with? Took 2 incomes to qualify for the house and it may take 2 incomes to qualify for the Car.
Message 4 of 6
Established Contributor

Re: DTI on an auto loan with a joint mortgage

Are you claiming your mortgage partner's income with your own?  you are allowed to do so, you are expected to do so.  Its why income is usually listed as

 

Household Income: |_____________|

 

 

Message 5 of 6
New Member

Re: DTI on an auto loan with a joint mortgage

I wanted to post a follow up so maybe this will help someone else looking. The dealership said they split the amount of the mortgage by 50% if it is joint. They assume you are paying half. When i called around to another bank and credit union they also told me they calculate the DTI the same way. So, Overall i guess it depends where you go. IMO it’s worth asking in advance before you apply if it’s a bank/CU. Hope This helps someone!
Message 6 of 6
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