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Back End Debt to Income Ratio (Construction Loan)
Posted on 3/23/16 at 9:50 am
Posted on 3/23/16 at 9:50 am
Question for you bankers out there:
Do all banks make the cut-off at 40%, debt to income ratio? I was told that if your "back end" debt to income ratio is higher than 40% you cannot get approved for construction....If I understand correctly, this is the ratio that projects your future mortgage payment. Anyone have experience with this? Thanks!
Do all banks make the cut-off at 40%, debt to income ratio? I was told that if your "back end" debt to income ratio is higher than 40% you cannot get approved for construction....If I understand correctly, this is the ratio that projects your future mortgage payment. Anyone have experience with this? Thanks!
This post was edited on 3/23/16 at 10:13 am
2
Posted on 3/23/16 at 10:31 am to btnetigers
We do construction loans with 43% back. If your LTV is 80% or below we can sometimes get an approval up to 50% DTI ratio.
The back end ratio takes all your liabilities plus your projected future mortgage payments divided income on a monthly basis,
The back end ratio takes all your liabilities plus your projected future mortgage payments divided income on a monthly basis,
Posted on 3/23/16 at 10:35 am to HYDRebs
quote:
We do construction loans with 43% back.
Wow....okay. The bank that I'm working with isn't budging from a firm 40%. I'm at like 40.1%, and am very frustrated. Do you work for a bank in the Baton Rouge area?
Posted on 3/23/16 at 11:00 am to btnetigers
We do have a Louisiana branch, but its in Monroe.
Bad news we don't do construction loans in LA
sorry I've never looked into it even though I work in Texas. Shop or look around though. I wouldn't be surprised if you could find a LA bank go to 43% back ration on constuction.
Bad news we don't do construction loans in LA
sorry I've never looked into it even though I work in Texas. Shop or look around though. I wouldn't be surprised if you could find a LA bank go to 43% back ration on constuction. This post was edited on 3/23/16 at 11:07 am
Posted on 3/23/16 at 11:55 am to HYDRebs
Over 40% isn't uncommon. Banks are tightening up their taste for credit with the state of the economy though. Check with smaller (local) banks.
Posted on 3/23/16 at 1:30 pm to btnetigers
Call Assurance Financial in town. Talk to Jude. I've used him and he is great.
Posted on 3/23/16 at 2:04 pm to ds1tiger
You've used them for construction? What was their debt to income limit?
Posted on 3/23/16 at 2:27 pm to btnetigers
Not for construction, just a straight purchase. I know they do construction loans and he is knowledgable. He can probably tell you right quick what their limits are.
Posted on 3/23/16 at 2:42 pm to btnetigers
They can go up to 45%. I emailed him out of curiosity.
Posted on 3/23/16 at 2:49 pm to ds1tiger
Thanks for the info!!
Posted on 3/23/16 at 3:24 pm to btnetigers
I would give Anthony at Eustis Mortgage a call. He has helped a couple of friends of mine with construction loans in the past. They don't do the actual construction loans themselves but he works with several local banks for you to get it done.
Posted on 3/23/16 at 3:32 pm to btnetigers
Couldn't you just make a payment on one of your accounts to knock it below 40%
.1% isn't much
.1% isn't much
This post was edited on 3/23/16 at 3:33 pm
Posted on 3/23/16 at 3:42 pm to btnetigers
several banks in BR will go over 40% for varying products. Whitney, EFCU are 2 off the top of my head. You do have options.
Posted on 3/23/16 at 8:40 pm to npt817
Second the Anthony Williams recommendation. He is a beast.
Posted on 3/24/16 at 8:07 am to arn
I'd have to completely pay off an account, not just bring the balance down....which sucks.
Posted on 3/24/16 at 8:37 am to btnetigers
You wouldn't have to pay off anything if you go with the guy that goes up to 45%.
Posted on 3/24/16 at 9:01 am to jkb531
You're right....I just hate to start the process all over again. Guess I may have to though...
Posted on 3/25/16 at 10:43 am to btnetigers
whitney bank goes to 43% and has a one time close construction loan. post me an email address and I will email you some info.
Posted on 3/26/16 at 3:18 pm to hawkeye007
Hawk, can you send me some info. Beginning the process.
scooby65td@gmail.com
scooby65td@gmail.com
Posted on 3/28/16 at 12:26 pm to Scooby
Im also in the market for a construction loan on the Northshore area. Anyone know which banks dont require a licsened contractor? Wanting to sub it myself
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