Lenders use debt to income to determine whether the borrower can handle the payment on the new loan. An example if the borrowers gross (before taxes)income is $50,000 annually they would want to see that all debt payments would be less than $17,500.(35% of $50,000). Monthly debt payments couldn't be more than $1,458.33.
That percentage on Debt to Income is pretty standard. It has been at different levels depending on how conservative the lender is being. When I was in banking a number of years ago they used 35% but during the subprime lending peak they lent to people with ratios over fifty percent.
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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
would be hard to find investors using FHA because they have such strict guidelines. Most investors want ugly houses that need massive repairs to get a good deal. FHA won't even touch a house if the road in front of the house is not paved. Basically, the house needs to be in move-in condition. Most investors don't even like to sell their house FHA after their rehab because it takes too long.
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what do you mean less than 35% debt to income ratio. Its an FHA refi, they should give you 100%
Lenders use debt to income to determine whether the borrower can handle the payment on the new loan. An example if the borrowers gross (before taxes)income is $50,000 annually they would want to see that all debt payments would be less than $17,500.(35% of $50,000). Monthly debt payments couldn't be more than $1,458.33.
That percentage on Debt to Income is pretty standard. It has been at different levels depending on how conservative the lender is being. When I was in banking a number of years ago they used 35% but during the subprime lending peak they lent to people with ratios over fifty percent.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
would be hard to find investors using FHA because they have such strict guidelines. Most investors want ugly houses that need massive repairs to get a good deal. FHA won't even touch a house if the road in front of the house is not paved. Basically, the house needs to be in move-in condition. Most investors don't even like to sell their house FHA after their rehab because it takes too long.