VA home loan DTI ratios

Anonymous · ‎03-14-2008

From the best of my knowledge the VA loan can be taken out for those that are at or under the 45% DTI ratio. Has this been done for those that are (or will be) at the 55% DTI?

Anonymous · ‎03-15-2008

What is the reason for the 55% is what they will look at - is their a promotion looming (If AD) or is spuse returning to work after a hiatus - all are relevant. Will income increase int he next couple of years (recent grad, etc)? Do you have 'reserves' even if putting 0% down?

It's puzzle they put thogether..

Ours:

DTI 65% based only on DH's retirement income (full 30 years at 100% and not taxable)... knowing that we have reserves, and investments and that we both work still- they put it thru just on DU alone...underwriter wanted proof of reserves(easy) and investments(easy) - and tax returns.

Message Edited by Lady_Scarlet on 03-15-2008 10:15 AM

Message Edited by Lady_Scarlet on 03-15-2008 10:16 AM

Anonymous · ‎03-18-2008

Can you tell me why then out of 4 lending places. Only 1 can give me the max (417k) while the others can only give me half that?

Anonymous · ‎03-18-2008

We were told the VA will only look at you if your DTI is 41% or less. We were also told they're very strict about that.

Anonymous · ‎03-18-2008

Do they look at the DTI with the proposed mortgage payment for the 41% mark, or before the mortgage?

I've heard both,... but wanted to try and find straight answer.

Anonymous · ‎03-18-2008

If they are looking at 41% DTI before the mortgage, it's no wonder people are in WAY over their heads and we're in the mess we're in.

I would assume its with the mortgage. I would hope.

Anonymous · ‎03-18-2008

With our new mortgage combined with our total debt, we would be at about 52% DTI. We have been approved for a VA loan for $417000.

However, my original question still has not been answered: Why out of 4 places we tried, only 1 said yes, we can get approved for 417k when other places told us that the max we can get due to our DTI was around $250k?

Anonymous · ‎03-18-2008

Different lenders have different risks they are willing to take. DTI's are not a standard. They are set by the individual lender. Back when money was handed to anyone with a pulse, I have heard of DTI's in the 60%'s.

Having said that there are standards that have to be met in order for certain brokers to purchase mortgages. Freddie and Fannie have set DTI's they look for when purchasing mortgages. Other independent investors have the right to lax on their requirements and take on that risk.

If you are offered a loan that allows for a 52% DTI the bank is narrowing their potential buyers of this type of loan therefore probably making you pay a higher % to offset.