Home Buying in 10583>Question Details

Paulette Tal…, Real Estate Pro in Scarsdale, NY

What debt to income ratio must you have to purchase an apartment in the New York City area?

Asked by Paulette Talley, Scarsdale, NY Mon Dec 5, 2011

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The debt to income ratio that I would suggest is 25% of your gross income. Majority of mortgage broker in NY would recommend 30-35% of your gross income, but I think that’s bad planning. The easiest way to look at it is, if you are a couple, you should only purchase a property that you can afford with just one of your INCOME. For example, if Mary’s annual income is $80,000 and Mark’s salary is $60,000 than the two of should only purchase a property that is equal to 3 times Mark’s annual income. Or 35,000 [ (80 +60 ) x 25% ] toward your home, which Mark’s annual income would be able to take care of . You should always use the rule of conservatism when buying a property and not depend so much on the mortgage broker.
0 votes Thank Flag Link Fri Sep 21, 2012
When you see apartment, are you talking about a co-op or a kind? In general banks to not go higher than a 48% debt to income ratio on any loan. That would apply to condos at home. Nap for collapse the co-op boards have the wrong rules and generally the highest they will allow is a 34% debt to income ratio, some co-ops are even stricter and will not go higher than 28% debt to income ratio. It's all on at building by building basis. Therefore you should reach out to meet you in the city who's experienced in dealing with the buildings that you are interested in and let him know your situation once you have established your debt to income ratio with the agent they can then advise you as to which buildings will work for you, so as not to waste your time. Good luck and happy hunting!

Marco Gomez
NY state Associate Broker
Keller Williams Landmark II
Marco.gomez@gmail.com
0 votes Thank Flag Link Fri Dec 9, 2011
I am finding that in Westchester County, Scarsdale, Edgemont, Eastchester, boards insist pretty much on 25-28% Debt to Income ratio.
0 votes Thank Flag Link Wed Dec 7, 2011
Paulette,
Are your clients buying a condo or a coop? Each coop sets there own criteria on DTI. Your client can get a mortgage commitment but that does not mean the coop will approve them. When ever I speak to a buyer looking to purchase a coop, I check with the coop for their criteria.
On a condo it is different. If the buyers' FICO are great then we are looking at 42% back end.
0 votes Thank Flag Link Tue Dec 6, 2011
As an agent why not simply direct your client/customer to any licensed loan officer to determine mortgage qualification; if they are interested in co-ops, you should be aware each building is different when it comes to financial restrictions; therefore you may wish to refer this person(s) to a NYC broker/agent...
0 votes Thank Flag Link Mon Dec 5, 2011
Just as so many questions must be answered; "it depends",
so does this one:
It depend on the Lender and any Programs the Buyer may be using,
and it seems to change from day-to-day.

Good luck and may God bless
0 votes Thank Flag Link Mon Dec 5, 2011
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