What is considered an acceptable DTI?

Hello. I'm Nolan Merritt with Citywide Home Loans (NMLS #250045). My phone number is 801-647-4600 (cell), and email is nmerritt@citywidehomeloans.com.The short answer is yes. Both conventional and FHA loans allow for a DTI ratio between 45% and 50%. Of those two types of loans FHA is the most flexible, but either may work. I you would like to discuss details, you may call or email me.

First, the allowable DTI varies depending on the loan product you are using.. Conventional is currently at 45%, but with strong compensating factors, you can go as high as 50%.. Come July 29th, conventional will go to 50% regardless of compensating factors.. FHA can go as high as 57%, and I've done VA loans as high as 56%.. USDA is 41%, but with strong compensating factors, they can go to 44%. You should let your lender calculate your DTI.. most borrowers do not do it correctly, and are usually high. We only include the MINIMUM payments on your outstanding debt.. credit cards, car loans, student loans, etc.. are all factored into your ratio along with the new housing payment, including HOA's, condo association fees, or any other property attached assessments.. We would also include alimony, child support, tax payments, or any other court ordered/mandated payments. We DO NOT include your regularly occurring monthly BILLS like cell phone, electric, cable, utilities, insurance payments, etc.. are all IGNORED for DTI calculations.. The best advice I can give you is to contact a mortgage bank/broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with a Banker/Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the banker/broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the big box banks. I'm a preferred Lender with Arizona and California being my primary markets. 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 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893