- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Home loan qualification
Posted on 2/18/13 at 10:45 pm
Posted on 2/18/13 at 10:45 pm
I know they typically go by a percentage of your total income vs. debts. What is that percentage and is it based on gross or net income? Thanks
1
Posted on 2/18/13 at 10:51 pm to BullredsRus
quote:
gross
quote:
percentage
Absolute max I think is 41%.
Posted on 2/18/13 at 10:59 pm to wegotdatwood
Don't know if credit score affects the percentage, but I had a median score of 769 last time it was pulled. It consistently stays around that mark.
So you're saying 41 percent of my gross income should be more than all of my fixed debts such as car notes, student loans, house notes, etc. right?
So you're saying 41 percent of my gross income should be more than all of my fixed debts such as car notes, student loans, house notes, etc. right?
Posted on 2/18/13 at 11:25 pm to BullredsRus
Credit score will come into play based on their risk scoring model and may affect your rate if they use risk based pricing. The percentage for debt to income varies by bank and will depend on their strategy. The most common is a maximum of 36% total with a maximum of 26% used for housing. They use AGI plus a few add backs and convert to monthly or use payment records. They ask you for payments on all liabilities and verify with the credit reports. In other words, your monthly rent/mortgage payments can't exceed 26% of your monthly gross income and all of your monthly payments including rent/mortgage, consumer debt, credit cards, student loans, etc., can't exceed 36% of your monthly gross income.
This post was edited on 2/18/13 at 11:32 pm
Posted on 2/19/13 at 12:00 am to BullredsRus
FHA guidelines are to have no more than 31% PITI (Principal, Interest, Taxes, Insurance) and 43% total (includes all payments you are obligated to pay; ie loans, credit cards, mortgage, etc.). Conventional can be a bit higher. Also, I was told by my lender that these guidelines are for manually underwritten loans and that automated underwritten loans can have a higher DTI. If they use the automated underwriting software, they go up to 57%. Lenders will have their own guidelines and requirements. They will typically go higher with compensating factors such as large down payment, excellent credit or large amounts of reserves available.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News