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Going Rate For Debt to Income and House Payment Vs Income To Buy or Refi Home

913 Views | 3 Replies | Last: 4 yr ago by SteveBott
Jimmy Conway
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Just curious as to what ranges we are seeing on DTI and Income to Loan Amount for self employed persons.

I got quoted 50% on the DTI by my lender so just wondering if that's pretty standard.
GoodAg84
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AG
50% is generally the maximum.
Gig Em!

12thMan9
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AG
Above 50% DTI will likely be a higher rate mortgage. The info you provided the lender in terms of income & outflow obviously help them determine DTI.

Maybe he/she meant that a DTI of 50% would be no issue?
Ronnie '88
SteveBott
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AG
For conventional 50% is pretty much the limit. I've seen approval for slightly more but not much. Say 50.3% or similar. FHA and VA will go higher say 55% with great credit.

Then you have the non-conventional loans called Non-QMs where you can state your income but not prove it. The rate is higher for the increase in risk.

Bottom line for SE borrowers is your CPA is my enemy on income. I have to use tax returns so your income is pretty well scrutinized and scrubbed before I see the documents.
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