Question about calculating DTI ratio...

Anonymous · ‎03-23-2008

Ok, I have a few collections, Charge offs, etc that are falling off between 7/08-11/08 of this year. At this time, I only have a revolving credit of $150.00 with a credit card. I also have a Car Payment and my school loan. This is all the current debt I have. Everything else is old and will come off my report by the end of this year ealry next.

My question is..Do i add these collections and negative items to my Debt to Income Ratio?

Thanks

Greg

Message Edited by theshadow12345 on 03-23-2008 07:43 PM

Anonymous · ‎03-24-2008

Anyone know?

Thanks

Greg

Anonymous · ‎03-24-2008

Here's what I know.

Debt to income ratio is the percentage of what you owe divided by what you bring in. If its a negative item with a balance, then yes, they add that. If its a negative but with a zero balance then no. What you owe is what you owe. Doesn't matter on the status of the debt.

Anonymous · ‎03-24-2008

does this statment hold true with an FHA loan as well?

trashyart2000 wrote:
Here's what I know.

Debt to income ratio is the percentage of what you owe divided by what you bring in. If its a negative item with a balance, then yes, they add that. If its a negative but with a zero balance then no. What you owe is what you owe. Doesn't matter on the status of the debt.

Anonymous · ‎03-24-2008

It holds true for every type of loan. FHA only means the government will guarantee the bank they will get their money regardless of your situation. It has NOTHING to do with DTI. DTI only is used to see how much you spend vs bring in. Some places, require a lower DTI, some places are more laxed- that's all.