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what is the back end debt to income ratio for conventional loans with score over 680 on a 280k loan?

  • August 17 2012 - Garland
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Answers (5)

Max ratio on FHA is 46.99 housing/56.99 total. Conventional is 49.99/49.99. Some lenders will impose stricter limits.
  • August 18 2012
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If you are doing an FHA loan, I've had approvals as high as 59% back end DTI ratio; on Fannie/Freddie, 45% is max.
  • August 18 2012
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there is no set answer that applies for every buyer.   The loans all get run through an automated underwriting program first. Like James, I have also received loan approvals with highdebt ratios.   But I have also seen loans declined with lower debt ratios.   I always use 45% as a guideline. The higher you go, the less likely you are to get approved.

Make sure you are submitting all your assets, not just the ones you are using for your down payment. The stronger your financial picture the better. 

If you are still having a hard time qualifying, consider the following.  Pay down debt BEFORE you apply. Get a family member to cosign. 
Put more money down.  Negotiate a lower price.

Zero balance credit cards do not get included in your debt ratio.
  • August 17 2012
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i'm at 47% if i wanna get this home with 3.5 % down with FHA. income at 8k almost. Do unused 0 balance credit cards count towards the minimum amount of total debt?
  • August 17 2012
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Lots of factors can determine that. I've gotten them through Fannie's Desktop underwriter at 55. Borrow has large assets though. What's the problem?
  • August 17 2012
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