High debt to income ratio and mortgage qualification
Two things that mortgage lenders really count on in qualifying a mortgage loan borrower are credit and income. The mortgage lender needs to be convinced that the mortgage loan borrower is able to make his or her monthly mortgage payments in a timely manner year after year. If they feel that the mortgage loan borrower does not have sufficient income and a high income to debt ratio, they may deny the amount of mortgage loan amount the mortgage loan borrower is requesting and offer the borrower a smaller mortgage amount.
High debt to income ratio can be cause for mortgage denial
High debt to income ratio is one of the main reasons many mortgage lenders deny mortgage applications. Debt to income ratio is calculated by dividing the total monthly payments a borrower has by the gross monthly income of the borrower. For example, if the mortgage loan borrower has total monthly payments which totals $1,000 per month and his gross monthly income is $2,000, then his debt to income ratio is considered to be 50%. Most mortgage lenders do not want borrowers to have a total combined debt to income ratio of more than 43%. This includes the housing payment, auto payment, credit card payments, student loan payments, and other installment loan monthly payments. Cell phone bills, cable television, and home internet expenses are not included in calculating debt to income ratios.
High debt to income ratio mortgage lenders
The good news is that there are many mortgage lenders that will qualify mortgage loan borrowers with high debt to income ratio. I specialize in helping mortgage loan borrowers who have had prior credit problems such as bankruptcies, foreclosure, collections, judgments, tax liens, and other credit problems. I also specialize in helping home buyers who have high debt to income ratio and need to qualify for a mortgage loan. I have mortgage wholesale lenders who will qualify a mortgage loan borrower with high debt to income ratio, as high as 56% debt to income ratio.
If you have a high debt to income ratio and have been denied for a mortgage by your bank or another mortgage company, please contact me at www.gustancho.com . If you need a Florida mortgage or California mortgage loan, Texas mortgage loan, Indiana mortgage loan, or Illinois mortgage loan and have had credit problems or have high debt to income ratio, I can help you in getting a home loan mortgage approval.
Gustan Cho NMLS ID 873293