Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans debt to income ratios, KY FHA LOANS

Debt-to-Income Ratio Explained: A Guide for First-Time Home Buyers

What’s a debt-to-income ratio, and why you need a low one to buy a home
In “First Time Home Buyer Loans–Kentucky”

How Much House Can I Afford? How to Calculate Debt To Income Ratio (DTI) For First Time Home Buyers

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans's avatarLouisville Kentucky Mortgage Loans

This article is too good not to be shared so it’s copied from The Washington Post.

When it comes to qualifying for a loan to buy a home or to refinance your mortgage, there are plenty of numbers to consider, such as your credit score and the appraised home value. Perhaps one of the most important numbers is your debt-to-income (DTI) ratio, which compares the minimum payments on all debt you must make each month with your gross monthly income.

“The DTI ratio is one of the most important considerations lenders take into account when evaluating the risk associated with a borrower taking on another payment,” says Paul Buege, president and chief operating officer of Inlanta Mortgage in Pewaukee, Wis. “The lower the DTI ratio a borrower has, the more confident the lender is about getting paid on time in the future based on the loan terms.”

It’s not just…

View original post 450 more words

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans debt to income ratios

Debt-to-Income (DTI) ratio requirements for ​Kentucky FHA, VA, USDA, and conventional mortgage loans 

Debt-to-Income (DTI) ratio requirements for ​Kentucky FHA, VA, USDA, and conventional mortgage loans

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans bonus income fha loan, debt to income ratios, disability income, income, overtime income fha loan, Overtime, Bonus, or Tip Income, rental income, ssi income disability

Debt-to-Income Ratio for Kentucky Mortgage Loans

Your debt-to-income ratio, technically speaking, is all of your monthly debt payments divided by your gross monthly income—that is, the percentage of your gross monthly income that goes towards payments for rent, mortgage, credit cards, and other debt. This is how lenders measure your ability to manage the monthly mortgage payments to repay the money you’ll be borrowing. 

To calculate your debt-to-income ratio, add up your monthly debts—this includes car payments, credit cards, mortgages, and student loans. Divide this amount by your monthly gross income, and you’ll get your DTI ratio. 

For reference, the standard maximum DTI for conventional loans is 45%, and for FHA loans it’s 55%. Of course, the maximum DTI depends on the home loan.

Debt-to-Income Ratio for Kentucky Mortgage Loans:


Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle Louisville, KY 40223

Company NMLS ID #1364

click here for directions to our office


Text/call:      502-905-3708

fax:            502-327-9119


email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans debt to income ratios

Qualified Residential Mortgage Could Set Bar at 43% DTI Ratio

Qualified Residential Mortgage Could Set Bar at 43% DTI Ratio

According to Bloomberg, two people familiar with the new rule (who asked to remain anonymous) have said the “line” will be drawn at 43% debt-to-income ratio. This means the borrower’s back-end or total DTI must not exceed 43%, if the home loan is to be considered a Qualified Residential Mortgage.
That number should have a familiar ring to industry professionals. Previous rules have also set the DTI bar at 43%. It seems that federal financial regulators aren’t comfortable with debt-to-income ratios above 43%.

Read more: http://www.homebuyinginstitute.com/news/qrm-rule-debt-to-income-444/#ixzz2cRB2K1tU

The QRM rule has been a long time coming. It was first proposed early in 2011, but has yet to be finalized or implemented. Earlier proposals included a 20% down-payment requirement and a maximum debt-to-income ratio of 36%. But those proposals drew criticism from a variety of groups, ranging from the National Association of Realtors (NAR) to the Mortgage Bankers Association (MBA), and even a few nonprofit consumer-advocacy groups.
According to a recent Bloomberg report, the current version of the Qualified Residential Mortgage is “softer” than previous proposals. It seems the MBA’s lobbying efforts have paid off. Financial corporations influencing financial regulators. Where have we heard that before?

Read more: http://www.homebuyinginstitute.com/news/qrm-rule-debt-to-income-444/#ixzz2cRB8WWrR





Posted by at 10:45 AM No comments:   

Labels: 

I specialize in First Time Home Buyers and move-up buyers. I have helped over 500 families buy their first home or second home and I would like to help your family. FHA, Rural Housing, KHC( Zero down loans ), VA, Conventional loans. Free credit report and Free pre-approvals within 1 hour..Call me today at 502-905-3708 or email me at kentuckyloan@gmail.com- (NMLS# 57916)