#TipTuesday: “Millennial Misconceptions – Debt To Income Ratios”

#TipTuesday: “Millennial Misconceptions – Debt To Income Ratios”


Hey it’s Giuseppe with Hallmark Mortgage
I hope you’re doing great. In today’s Millennial Misconceptions I wanted to
touch on debt to income ratios. So for about a decade or so traditional loan
programs had what was called a debt-to- income ratio max of 45% which meant
that your new house payment plus the minimum payments on your debt that would show up on your credit report or anything like child support or alimony
or anything like that divided by your gross income would have to be less than
45% and so as prices have moved up, last year middle of last year,
conventional loans did raise those limits to 50% so that is helping.
Certainly more people qualify for a bit more home as prices keep moving higher
and then for FHA loans that limit is actually 55%.Now there’s no hard
or set rule on those they have to run through an automated underwriting system so the best first step is to get with your loan officer. We would love to help,
of course, and then we can run it through the automated underwriting software
system and that will tell us how high on that scale we can go. If you have any
questions give me a call we’re always here to help. I’ll talk to you soon
bye-bye

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