If You Have A High Debt To Income Ratio – Here’s One Way To Solve It…

Good Morning!

Here’s trick I’ve used successfully on borrowers that have high debt to income ratios on conventional loans.

Not long ago Fannie Mae came out with a 45% limit on debt to income ratio if the loan to value ratio is over 80%.

If you are over 45% on your debt to income ratio – you won’t be able to get a conventional approval.

Here’s one possible way around this – lender paid mortgage insurance.

…With lender paid mortgage insurance – we pay your mortgage insurance in a lump sum up front.

This way there is no monthly mortgage insurance.

No monthly mortgage insurance means a lower debt to income ratio!

…You will want to make sure getting rid of the monthly MI will be enough to push you under the 45% limit.

If so, then this simple change could be your key to loan approval!

Thanks for reading – and have a great day!

Brett