How High Can It Go? Max DTI's

Max DTI’s Allowed for FHA | VA | USDA

Here is a breakdown of the maximum DTI’s we will accept on the different government loan programs we fund.

FHA

Approve/Accept Eligible:

No Max DTI limit with the exception of 50% when a 2-4 unit property or First Time Home Buyer.

Refer/Eligible: ( also for Manual Downgrades, Simple Refinance, Credit Qualifying Streamlines)

580+ with 2 comp factors   40/50%

580+ with no other debt    40/40%

580+ with 1 comp factor     37/47%

580+ with no comp factor   31/43%

560 to 579 No Credit Score (Non-traditional/Insufficent Credit) 31/43%

Comp Factors that can be used:

1. Reserves, at least 1 month, borrowers own funds.
2. Minimal increase in housing payment (rule of thumb 5 to 10%)
3. Residual Income (just like VA)

VA

AUS Approve/Eligible : No Max DTI

Refer/Eligible or Manual UW : Max 45% DTI (560+ credit score - up to 50% with exception)

Insufficent Credit: Max 41% DTI (second signature required)

DTI overlays do not apply to IRRLs.

USDA

GUS Accept/Eligible & GUS Accept/Ineligible:

DTI’s are determined by GUS. Typically GUS does not approve DTI’s above 50%

Refer/Eligible and Manual UW: 29/41% DTI is allowed.

With an RD Debt Ratio Waiver it is possible to go up to 32/44% DTI with the following:

Credit score for all borrowers must be 680+ and must provide 1 acceptable comp factor from below.

1. PITI will be equal to or lower than current payment.
2. 3 months + cash reserves (borrowers own funds)
3. All applicants must be with current employer for at least 2 years.

Easy Broker Approval – be able to submit within a few hours. Ask about our Jump Start Broker Application. I can get it over to you quickly so that you can get your loans submitted.

If you have any additional questions, please feel free to reach out.