Posted on: 22nd Jul, 2009 11:27 pm
I'm trying to qet a fha loan for 205,000. My income to debt ratio is about 54%. Everything I read says it should be closer to 40% but my lender told me I'm good at 54%. Is he mistaking and ill get the rug pulled out from underneath me later? Or are those ratios flexible?
Hi Brett,
Ideally, your DTI ratio should be within the range of 41% to get approved for a loan. But the ratios are flexible. If your credit is good and your income is good enough to help you afford the payments, the lender will consider offering you a loan. However, 54% is a bit too high. You ought to try and bring it down to somewhere around 45% at least.
Ideally, your DTI ratio should be within the range of 41% to get approved for a loan. But the ratios are flexible. If your credit is good and your income is good enough to help you afford the payments, the lender will consider offering you a loan. However, 54% is a bit too high. You ought to try and bring it down to somewhere around 45% at least.
no doubt 54% is high, but undoubtedly your lender is working with automated underwriting, which has likely provided an approval. i've seen deals with ratios that high as well.
you can get your project approved. but it is a risk for you as 54% of your income will go for debt payment which is high