how much do student loans affect my dti ratio and what is the minimum dti?

There are a lot of good answers below. One thing I would add is that you can typically get a letter from your student loan provider that shows what the payment will be once out of deferment and the lender will use that figure instead of generating some sort of percentage, which is usually higher. DTI will usually max out between 45-55% depending on the type of program and strength of the loan profile. Best of luck!

it really depends on the loan product your trying to use for your purchase.. FHA vs. Conventional look at the debt differently. But in addition to conforming guidelines, each lender can have their own specific guidelines above and beyond.. so even though FHA say if the student loan deferred for at least 12 months they don't have to include the debt, the lender could have an additional overlay that says they will need to add the projected payment for qualifying purposes.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Student Loans impact your DTI just like any other liability if you are in a repayment status. If the loans are deferred for at least 12 months past the closing of a loan the payment does not have to be calculated in your DTI. Were you asking what the MAXIMUM DTI is? If so, that depends on the loan program you are trying to obtain. My company can exceed 50% total DTI in some cases. I am located in Va. Beach if you would like me to put together some options for you to consider. See my profile for contact information. Best of luck!

Both Fannie and Freddie require that a monthly payment be used on deferred student loans. FHA and VA loans are more flexible. The FHA and VA guidelines state that if a deferred student loan payment comes due within 12 months of the mortgage origination, the monthly payment must be included in the debt ratio analysis. However, if it comes due after 12 months from the date of the mortgage then it is not used in the calculation, lenders may differ but we at Monarch based out VA follow this guideline. I can be reached at 240-750-8315 or ballen@monarchmortgage.com

It depends on the type mortgage. FHA and VA loans (and some specialty programs for medical professionals) allow the lender to ignore any student loans which are deferred more than 12 month from the closing date on your mortgage. Otherwise, the monthly payment on all student loans counts the same as any other loan or monthly credit card payment. Maximum DTI ratio's generally are 45% for a conventional (not FHA or VA) loan and 50-55% of your gross income for strong borrowers for FHA or VA mortgages (there is no minimum DTI guideline). Don't forget that DTI includes ALL monthly loan and credit card payments, plus the mortgage, taxes, insurance and any HOA or regime (condo) fees for the home you are purchasing, plus any other real estate that you own. Contact me directly at pdumouchel@primelending.com or 843-619-6025 with any specific questions - I do lend in Virginia. Good luck!

See the good answers posted by other forum members.