Sentences with phrase «total debt ratio»

No maximum debt ratio; however lender must provide compensating factors if total debt ratio over 41 %.

, and (3) many don't have debt ratios to qualify, since (3a) many were liar loans to begin with, or (3b) they've racked up too much new debt to pay spiralling property tax, energy, health insurance and food costs, or (3c) incomes have fallen or (3d) they qualified for the subprime loan at 45 - 50 % debt ratios and don't meet the 43/45 % FHA total debt ratio.

For instance, we know that a total debt ratio of 45 % is a very important number.

Normally, if your total debt ratio is over 45 % then you are denied.

On new loans, these systems will both issue approvals up to a 50 % total debt ratio but if you are over 45 % you need to have what we call «compensating factors» to get approval.

Total Debt Ratio: In traditional mortgage underwriting, the total debt ratio is used to calculate how large the monthly payments on housing expenses and other debts (like student and car loans, credit card debt, etc.) should be, based on gross monthly income.

For example, if a mortgage product has a total debt ratio of 38 percent, the borrower's housing expenses plus other debts should not exceed 38 percent of his or her gross monthly income.

This gives you the total debt ratio that includes monthly credit obligations, which needs to be lower than 43 percent to qualify.

Non-Fixed payment loans: Payments for deferred loans, Income Based Repayment (IBR), Graduated, Adjustable, and other types of repayment agreements which are not fixed can not be used in the total debt ratio calculation.

Many go by the Qualified Mortgage Rule, which states your total debt ratio can not exceed 43 %.

The housing payment ratio (or front ratio) compares your total mortgage payment to your monthly income and your total debt ratio (or back ratio) compares your total monthly obligations including your mortgage payment to your monthly income.

Conventional lenders like to see your total debt ratio come in at no higher than 36 % of gross monthly income.

In addition to calculating your housing ratio, a lender will also analyze your total debt ratio.

Total debt ratio or «back - end ratio».

Most loan programs require a total debt ratio lower than 36 %.

You can also figure out your total debt ratio by adding in your student loan payments, mortgage or rent, and any other monthly obligations you have, divide by monthly income, and multiply by 100.

Did they say what your total debt ratio is?