It’s very hard to get a Conventional loan approved with a debt to income ratio higher than 45%.
I wanted to give you one little trick you can use to help out with your debt to income ratio.
…Use lender paid mortgage insurance – have your mortgage lender pay your mortgage insurance in a lump sum up front. It’s called Lender Paid Mortgage Insurance.
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!
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
If you are thinking about buying a house, but you aren’t really sure if it’s…
Here is a breakdown of the maximum seller help amounts by loan program… Program: Conventional…
Your property tax bill usually comes out in late November, or early December. There are…
If you want to acquire rental properties, but you are having issues proving your income…
If you receive money from the State or a County sponsored organization for providing foster…
FHA gift questions come up often. I wanted to give you the rules on FHA…