If you have been told that your debt to income ratio is too high for an approval on a conventioanl mortgage – this blog entry is for you…
Here’s a very useful solution that I’ve used successfully on borrowers that have high debt to income ratios on conventional loans.
Last year 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!
To sign up for my weekly mortgage quick tips – CLICK HERE.
To download this report “4 Easy Ways To Get Someone Else To Pay Your Closing Costs!” – CLICK HERE.
Thanks for reading, and have a great day!
Brett
Do you need cash out of your home, but you don’t want to refinance the…
I wanted to address the two most common questions that I get regarding reverse mortgages……
Do you need cash out of your home, but you don’t want to refinance the…
Would you like to get cash out of your home, but you don't want to…
If you need cash out of your house, but don't want to touch your first…
I wanted to address the two most common questions that I get regarding reverse mortgages……