Question Details

Ivy, Home Buyer in Livonia, MI

Whats the most yoube seen an FHA loan debt to income percentage stretch in certain circumstances? I know

Asked by Ivy, Livonia, MI Fri May 16, 2008

there are exeptions, I'm just wondering if anyone has actually seen a full approval for a much higher ratio than normally accepted.

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4
Ivy,

Lance gave you a very high debt to income ratio and I'm certain it's accurate. At the same time please be aware that in the present condition of the real estate market and with lenders becoming more and more careful who they lend money to, anything over a 45% debt to income ratio will more than likely require a manual underwrite. This means that even with an automated approval, a human underwriter will most likely make the final decision.

Good Luck!

Trey Bowden
Mortgage Lender
Oklahoma
(405) 340-3277
2 votes Thank Flag Link Fri May 16, 2008
With all the moons & stars properly aligned, I have had a 65% DTI approved on a refinance.
2 votes Thank Flag Link Fri May 16, 2008
I've seen it go into the 50"s. Thats about it. You need an automated approval however. The guidelines state a max 41%. You better have some money in the bank if you want to go any higher.
Web Reference: http://getprequalified.com
1 vote Thank Flag Link Sun May 18, 2008
Ivy,

That is a very good question, and I agree with Trey and Lance. It will most certainly have to be manually underwritten because automated system won't accept a debt ratio that high. I've seen a 67% debt ratio approved through a broker, but I cannot remember if it was conventional or FHA, I am pretty sure it was conventional, and it went with the exact income documentation they had provided thier broker, no stated, nothing. It is possible but like they have said somewhat rare.

Brent Bester
Mortgage Professional
614-622-8916
bbester@usavingsbank.com
1 vote Thank Flag Link Fri May 16, 2008
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