Posted on: 13th Mar, 2012 01:42 am
Hi there!! Is there anyone here who knows what the maximum DTI for wells Fargo mortgage is? Is it 43% or 45%?
Hi Sandra,
Well, in case of conventional mortgages, the DTI ratio limits are 28/36 whereas FHA limits are 29/41.
Take care
Well, in case of conventional mortgages, the DTI ratio limits are 28/36 whereas FHA limits are 29/41.
Take care
Most loans are underwritten first by going through an AUTOMATED underwriting process. The AUTOMATED underwriting process usually approves loans up to 45% DTI.
Then a human being underwrites the loan to ensure the documents in the file (income and assets, etc.) match what was entered to run the AUTOMATED system.
For very strong applications, the automated system sometimes approves to 50% DTI
For various reasons, a small % of applications MUST be underwritten MANUALLY. MANUALLY underwritten loans have lower DTI guidelines.
Why do you ask about Wells Fargo specifically?
Most lenders are using Fannie Mae or Freddiie Mac or FHA guidelines and AUTOMATED systems and money, so, almost all such lenders have the same guidelines because they are using the same AUTOMATED systems.
Then a human being underwrites the loan to ensure the documents in the file (income and assets, etc.) match what was entered to run the AUTOMATED system.
For very strong applications, the automated system sometimes approves to 50% DTI
For various reasons, a small % of applications MUST be underwritten MANUALLY. MANUALLY underwritten loans have lower DTI guidelines.
Why do you ask about Wells Fargo specifically?
Most lenders are using Fannie Mae or Freddiie Mac or FHA guidelines and AUTOMATED systems and money, so, almost all such lenders have the same guidelines because they are using the same AUTOMATED systems.
