Gustan Cho Associates's video: How To Qualify For Mortgage With Debt To Income Ratio Issues 2021

1. Types of debt to income ratio * Each mortgage program has its own debt-to-income ratio requirements. For example, the FHA, VA, USDA, and conventional loans all have their own debt-to-income ratio requirements - Lenders may also have their own debt-to-income ratio requirements that are higher than the FHA, VA, USDA, FANNIE MAE, FREDDIE MAC minimum mortgage guidelines - Higher standards required by lenders are called overlays - Most lenders charge for government and conventional loans. * The Gustan Cho team has no lender overlays on government and conventional loans. 2. The lender imposes the income ratio on the debt Most lenders charge their lenders a debt to income ratio: - Fannie Mae cap applied to reduce the maximum debt-to-income ratio of conventional mortgage loans to 50% However, recent changes to Fannie Mae's guidelines have increased the debt-to-income ratio requirements to 50% DTI, as has Freddie Mac - FHA loan programs may have a maximum debt-to-income ratio of 46.9% at the start and 56.9% at the back - The lower the borrower's credit score, the lower the debt requirement relative to income - For example, for borrowers with credit ratings below 620 FICO, the maximum debt-to-income ratio for an FHA mortgage is capped at 43% DTI * However, if your credit score is above 620 FICO, the maximum debt-to-income limit may go up to 56.9% on an FHA mortgage. Read more https://gustancho.com/debt-to-income-ratio-issues * You want to know more, contact The Gustan Cho Team at 262-716-8151 or send a text message for a faster response. Or write to us at gcho@loancabin.com. We are available 7 days a week, in the evening, on weekends and holidays. * CHECK IF YOU QUALIFY: www.gustancho.com/fast-quote ***** Follow me ***** on Social Media 1. https://www.facebook.com/TheGustanChoTeam/ 2. https://www.facebook.com/alexcarlucciMortgage/ 3. https://www.instagram.com/gustanchoas... Be sure to subscribe for more: https://www.youtube.com/c/GustanChoAssociates ALEX CARLUCCI - SVP Mortgage Banker, NMLS # 229891 ALEX STATE LICENSES: - Alabama - Colorado - 100511536 - Florida - LO40799 - Illinois - 031.0026265 - Indiana - 38913 - Michigan - 229891 - Mississippi - Pennsylvania - 72654 - Tennessee - 200345 COMPANY ALL-STATE LICENSES: - Alabama, California, Colorado, Florida, Georgia, Illinois, Indiana, Michigan, New Jersey, Pennsylvania, Tennessee, Texas , Ohio All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Loan Cabin, Inc. and GCA does not guarantee the quality, accuracy, completeness, or timeliness of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Loan Cabin, Inc.. its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. Copyright © 2021 - Gustan Cho Associates NMLS 873293, DBA of Loan Cabin Inc. NMLS 165732 Address: 1910 S Highland Ave, Suite 300 Lombard, IL 60148