if you have high credit score 720 for example but high debt to income ratio, is it hard to get mortgage?

Question

approval

Answer 1

Conventional Gross mo. income to qualify is 28% for total H.P, (which includes taxes, ins., mtg. ins*, assoc. fees*, *if required) Conv. gross mo. income for H.P.+ residual mo. credit debt is 36%. F.H.A. is 31%, + 43% G.M I.. Take your G.M.I. multiply that amt. times the appropiate percentage and that will be the guide to go by. Example: $2,300.00 X 28% = $644.00 total mo. pmt., $2,300.00 X 36% = $828.00 equals H.P. + mo. debt. You must qualify under both equations. But there are exceptions to this rule, for instence if you are a new Doctor, this potentional increase in earnings would allow the U/W to exceed the ratio's. Hope this helps. Good Luck!

Answer 2

Depending on the size of the loan that you are seeking, some lenders will still allow debt to income ratios as high as 65%, however, you need to look carefully at your personal finances. Just because there are stated income and no ratio products out there that some brokers will try to sell you, it does not mean that it is in your best interest.

Brokers make their income by closing loans, they do not have any vested interest in whether you will be able to make your payments a year later. List your expenses, include anticipated utilities, maintenece and upkeep, as well as a budget for other incidental expenses. If you do not have enough income to meet that threshold, you may wish to look at a smaller home, or wait for a while to purchase your dream home.

Answer 3

It depends on how high the debt ratio is. Because you do have higher credit scores than most, you will getting a higher tolerance for your debt ratio. I have gotten 700+ scores approved up to a 62% debt ratio even given the new market conditons.

Answer 4

The other big piece is what you can put down.

With that score, you should be able to get a 5% down loan, 10% is much better. If you don't have that, you are probably facing a tough road.

Answer 5

What do you advise by employing undemanding credit? in case you have a score of a minimum of 680 i will help pair you with a corporation who will pay you to cosign. fee may well be everywhere as much as $15,000 and that they pay back the inner maximum loan from investments. e mail me in case you meet the standards and have an interest.

Answer 6

Total debt should not exceed 35% , including mortgage .

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Answer 7

It certainly can be. Your credit score is only only one part of the equation. If you don't make enough money to be able to make the payments, your credit score is meaningless.

Answer 8

with good assets DU approval should let you go to 65% back end ratio

Answer 9

720 is a great socre! If DTI ratio is high, you can go Stated income or no ratios. It's shouldn't be too hard.

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