What is the common DTI ratio for Jumbo? Prefer bigger bank such as Wells or BofA.

Asked by Homebuyer_CA, 94539 Fri Sep 16, 2011

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6
jjacobsDO, Landlord,
Sun Sep 18, 2011
We checked with our top lender BBVA - Tom Callahan - Sr Mortgage Officer recently and he said that all Jumbo loans are within his protfolio offerings and typically is approved with no issues around 45-47% DTI.
Depending on the clients occupation, strength of total file, loan purpose and program will determine how high the DTI can go.

We encourage you to email Tom at tom.callahan@bbvacompass.com

Our experience also tells us that his Jumbo rates are as low as we have seen them - just as recent as last week his Jumbo 30 yr fixed rate was a full -.875% lower than Bank of America. My client simply could not believe the rates and moved his file immediately to BBVA. BBVA is on of the largest international banks and safest banks within the U.S.

You can apply for the loan with BBVA at: http://www.bbvacompass.com/mortgages/tcallahan

Best wishes to you in getting approved, TJ Jacobs - RE Attorney
0 votes
, ,
Sat Sep 17, 2011
Common DTI is 31/45. If you have substantial liquid assets Portfolio Lenders have a formula they use to increase your income. In addition to Portfolio Loans we are a Correspondent Lender for Wells, Chase, GMAC, Sun Trust and several more. I specialize in Residential Portfolio Jumbo Loans. If you wish to discuss this in more detail I would be pleased to help you.

Happy funding, Rudi
Web Reference:  http://www.umboc.com
0 votes
, ,
Fri Sep 16, 2011
The answer varies from borrower to borrower. Even BAC or WFB go as high as 50+% DTI depending on the automated underwriting approval results. If you are worried about your debt ratio, you might consider going to a lender rather than a bank. I have heard that the big boys are tightening up a bit more lately.
Web Reference:  http://www.AFN-Loans.com
0 votes
Jacob Varghe…, , San Jose, CA
Fri Sep 16, 2011
Hi,
Every bank has its own guidelines.

Most loans are traded, and hence I would not worry about Big Bank or Small Bank.

The important thing is closing and funding on time.

Jacob Varghese
Certified Mortgage Coach
NMLS 327086
DRE 01790347
0 votes
John Dutra, , Fremont, CA
Fri Sep 16, 2011
Weaglehunter,

If you are talking about an Agency Jumbo - those loans above $417k and below $625k ($625,000 is the max for most high-cost counties such as Alameda and Contra Costa - the limit varies per county), they will usually accept a maximum of 45% for sure - some may go to 50%. These are Fannie Mae or Freddie Mac loans. If Mortgage Insurance is involved, their ratios take priority and they will limit it to 41% or less.

The DTI then is your full payment (Principal, Interest, Taxes, Insurance + any HOA fee) along with any monthly debt (your installment debt such as a car payment and the minimum monthly charge showing up on your credit bureau for any credit card payments), divided by your gross income.

Income calculations will vary dependent on full/part-time work, commission or seasonal work, retirement or social security income.

Any loan above the Fannie/Freddie limit for that county is considered a true Jumbo loan and they vary in what they will accept. Some will go to 45%, others limit it to 41% or less.
0 votes
Dan Tabit, Agent, Issaquah, WA
Fri Sep 16, 2011
Weaglehunter,
I checked on a rate sheet for a major lender and found 45%. In my experience doing loans, I have found that high income earners have been considered for higher ratios, so discuss this with a lender.
0 votes
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