what is a good debt to income ratio for a potential 230k mortgage?

Asked by hanson0807, Aurora, CO Wed Nov 14, 2012

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Matt Ackerman, , Denver, CO
Wed Nov 14, 2012
A 203k loan is an FHA and the guideline is a maximum of 43%. It can be higher if the rest of your qualifications are good, but I always ask, why would you want it higher.
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Robert McGui…, Agent, Denver, CO
Wed Nov 14, 2012

I have seen you on this question forum often. With all of the questions you have, it might be good to sit down with a broker and a lender who can work through all of the great questions you have and have a good discussion about your options. Let me know if you would like to set up a meeting and I can facilitate it with one of my good lenders.

The debt to income ratio for the FHA 203K has traditionally been 40-45% but as always, the lower the better.. With all of the constant changes in the mortgage banking industry I would check with a lender to verify the current requirements of this program. Best of success moving in the best directions at this time.

Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
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, ,
Wed Nov 14, 2012
Hi Hanson0807,

For mortgage approval, it depends on a few things like the loan program and your credit score.

For example: On a conventional loan with less than 20% down, you'll be capped at a 45% back end debt ratio but with an FHA mortgage with 3.5% down your back end ratio can be as high as 55% as long as your file gets approved through an automated underwriting system.

If you're thinking about this from the perspective of what's best for it's going to depend on your budget and what you're comfortable paying each month. You don't want to end up house rich but cash poor.

Please feel free to contact me for more information or help. You can also find info on my FHA Mortgage website by clicking the link below.

John Burke
Senior Mortgage Banker
Peoples Bank & Trust
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Rodolfo Canon, Agent, Denver, CO
Wed Nov 14, 2012
I think that with an FHA loan you can have up to 47%, but the lower the better. I know a variety of great lenders who could give you much more accurate information than I can. Let me know if I can be of assistance.
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Mario Lozano…, Agent, Denver, CO
Wed Nov 14, 2012
Great question. The lowest possible but most lenders would love to see you no more than the low 40 percentile. Let me know if you need help, we work with great lenders!
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