Posted on: 14th Sep, 2009 05:11 am
WHAT IS THE DEBT-TO-INCOME RATIO FOR FHA LOANS?
debt-to-income ratio calculates your monthly debt obligations against your current income. It is used as a risk indicator to help determine your ability to pay back a home loan
As suggested by nelsoncarolyn debt to income ratio is nothing but monthly obligation debt against income. for FHA and Conventional loan following are the details.-
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A ratio used by lenders to determine whether a person is qualified for a mortgage. Debt-to-Income is the total amount of monthly debt, including house payment, credit cards and other loans, divided by the total gross monthly income.
While the FHA guidelines note that the accepted debt ratios are 29% for the house debt and 41% for the house plus other monthly debt, those are the guidelines.
If one has good credit scores and reserves, good employment history, etc, the automated underwriting can approve debt ratios up to 46.99% and 54.99%.
Ratios over that could be possible, but, requires manual underwriting (not automated) and is difficult to get approved.
If one has good credit scores and reserves, good employment history, etc, the automated underwriting can approve debt ratios up to 46.99% and 54.99%.
Ratios over that could be possible, but, requires manual underwriting (not automated) and is difficult to get approved.
