So what DTI is everyone getting?

[Anonymous]

I'm curious what is  common DTI approval these days. I know everyone has different financial profiles but are lenders going higher now than they did a few years ago? I keep reading articles saying lenders want you to have a low DTI like 28/36 on conventional but than I read other articles that say they go up to 45% back end DTI now. So If anyone would like to share I'm interested what is common today and if you feel comfortable also what is your situation to get that DTI.

we have credit 740, current debts before future mortgage only 9% of gross income, and will have at least 5% down but might be able to go up to 10%. We are looking at needing to be approved for a total DTI of 39-40% of gross income to get even the lowest cost 3 bedrooms were we live.

Thank you for sharing!

[kc0039]

Conventional loans go up to 50% DTI, FHA go up to 56.99% DTI, and VA can go up to 67% DTI (residual is key in VA).

[Anonymous]

What I'm curious is will most lenders approve the max dti regardless or does it depend on your financial profile? For example, Would someone with 700 credit and 5% down on a convention be allowed to go to 40% dti but someone with 750 credit and 20% down on convention be able to go to 50% dti?

[kc0039]

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wrote:

What I'm curious is will most lenders approve the max dti regardless or does it depend on your financial profile? For example, Would someone with 700 credit and 5% down on a convention be allowed to go to 40% dti but someone with 750 credit and 20% down on convention be able to go to 50% dti?

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 If our Automated System says it's approvable and they're eligible, max DTI regardleses of financial profile. Only when they're manually underwritten that it's different and it's different per investor.

[Anonymous]

Ok so if we get approved for automatic underwriting than we can go to the highest DTI and it will get approved during underwriting ? I just want to make sure I'm getting it right this is for conventional with 10% down

we meet with our broker for the first time next week but it's driving me crazy waiting for answers to all my questions. I think we will only need to go to 40 DTI to get what we want but I would like some breathing room in case prices or rates suddenly go up after we start looking. Thank you!

[kc0039]

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wrote:

Ok so if we get approved for automatic underwriting than we can go to the highest DTI and it will get approved during underwriting ? I just want to make sure I'm getting it right this is for conventional with 10% down

we meet with our broker for the first time next week but it's driving me crazy waiting for answers to all my questions. I think we will only need to go to 40 DTI to get what we want but I would like some breathing room in case prices or rates suddenly go up after we start looking. Thank you!;

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Yes. The DTI part anyway. The rest depends on verification of your docs and if you get the nice underwriter lol 

[Anonymous]

My DTI without the mortgage is 14%...with my mortgage it will go up to around 31%

I went way under whatever crazy number my bank and all the calculators said I coud afford - it really blew my mind what they said I could go up to vs what I was comfortable paying per month.

[kc0039]

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wrote:

My DTI without the mortgage is 14%...with my mortgage it will go up to around 31%

I went way under whatever crazy number my bank and all the calculators said I coud afford - it really blew my mind what they said I could go up to vs what I was comfortable paying per month.

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We will tell you how much we think you can afford based on our guidelines per loan program. We will also give you advice on what NOT to do.