re: Homebuyers are now spending 40% of their gross income on mortgage and interest costs

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Why don’t they have strict DTI ratio limits and strict 20% down payment limits? Seems like this would make things as secure as needed.

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Most banks do have strict DTI requirements…especially after 2008. This person on twitter equated 40% DTI ratios with homebuyers paying 40% of gross income on mortgage. That just isn’t true.