What is an ability to repay worksheet?

This is no specific worksheet... most lenders use Loan Origination software that calculates your debt to income ratio.. the ability to repay refers to your back end debt to income ratio, which is all of your monthly debt payments, including the new housing payment. The new ratio is 43%, so if you make $5000 per month X 43% = $2,150. this means that if we take all the payments for your debt including the new home payment, it cannot total more than $2,150. For more info on ATR guidelines, here's the link to a PDF right off the Central Financial Protection Bureau's website. http://files.consumerfinance.gov/f/201312_cfpb_mortgage-rules_fact-vs-fiction.pdf. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

One more note.. this 43% rule only applies to conventional financing.. if you are using FHA, VA or USDA, then these lending programs have a waiver where they will allow a higher ratio, some as high as 55%. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com