Debt to income ratio (front end and back end) | TigerDroppings.com

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Paul Allen
USA Fan
Baton Rouge, LA
Member since Nov 2007
29366 posts

Debt to income ratio (front end and back end)



Front end is monthly mortgage note divided by gross monthly income, back end is revolving debt divided by gross monthly income, is this correct?

Also, what is considered healthy for a loan. Front end % and back end %, 30, 40%?








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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
11394 posts
 Online 

re: Debt to income ratio (front end and back end)


Depends on the down payment and whether it is conventional, FHA, VA or other financing. Back end as you put it is mortgage obligation plus all other monthly recurring debt.





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Paul Allen
USA Fan
Baton Rouge, LA
Member since Nov 2007
29366 posts

re: Debt to income ratio (front end and back end)


What's the minimum down on a 30 year fixed conventional non fha loan?





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JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4769 posts

re: Debt to income ratio (front end and back end)


I'm pretty sure you can go as low as 5% down with good credit.





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Paul Allen
USA Fan
Baton Rouge, LA
Member since Nov 2007
29366 posts

re: Debt to income ratio (front end and back end)


Over 700 credit score? How does it work for a married couples credit score, are they combined?





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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
11394 posts
 Online 

re: Debt to income ratio (front end and back end)


quote:

How does it work for a married couples credit score, are they combined?


I'm almost certain they factor in each score individually. So if your wife is the woman from that commercial with a 500 score and you are 700 and can qualify financially on your own you can still buy a house.






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Paul Allen
USA Fan
Baton Rouge, LA
Member since Nov 2007
29366 posts

re: Debt to income ratio (front end and back end)


So it's a moot point if both scores are over 700?





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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6583 posts

re: Debt to income ratio (front end and back end)


quote:

What's the minimum down on a 30 year fixed conventional non fha loan?


3%






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Paul Allen
USA Fan
Baton Rouge, LA
Member since Nov 2007
29366 posts

re: Debt to income ratio (front end and back end)


Link? For a non fha loan?





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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6583 posts

re: Debt to income ratio (front end and back end)


Call a few banks, one will do it. Hawk or VA will confirm. I could be wrong, but I believe it's a 95/5 but if you finance the pmi lender can go up to 97%





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DandyPimp
LSU Fan
New Orleans
Member since Jan 2007
786 posts

re: Debt to income ratio (front end and back end)


What about jumbo loan? I'm hearing you need at least 20% down





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Paul Allen
USA Fan
Baton Rouge, LA
Member since Nov 2007
29366 posts

re: Debt to income ratio (front end and back end)


Why would a Jimbo require such a high down payment?





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JonTheTigerFan
LSU Fan
Central, LA
Member since Nov 2003
4769 posts

re: Debt to income ratio (front end and back end)


quote:

Over 700 credit score? How does it work for a married couples credit score, are they combined?


Over 700 FICO score, you should have no problem. I know my credit union required a 680 for 5% down. You will still have to pay PMI but it's MUCH less than FHA. They will go off of your middle FICO score from the 3 bureaus (Equifax, Experian and TransUnion) and will use the lower middle score of you or your wife. If you're both over 700, that's a moot point.






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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
1972 posts

re: Debt to income ratio (front end and back end)


paul: if you have a 680 or up credit score you can put as little as 5% down non FHA loan. if your married they take the lowest middle credit score between the 2 of you. jumbo loan require 20% down because PMI companys will not insure jumbo loans. jumbo loans are all loans over 417k. debt to income ratios max are 45% on the back end and we use gross income to calculate that. front end is 40%. if you post an email address i will email you and answer any other questions you might have.





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