Debt to Income Ratios for A Kentucky Mortgage Loan



Joel Lobb (NMLS#57916)
Senior Loan Officer
American Mortgage Solutions, Inc.
800 Stone Creek Pkwy, Ste 7,
Louisville, KY 40223
(: (502) 905-3708 | 7 Fax: (502) 327-9119|
Company ID #1364 | MB73346

Kentucky First Time Home Buyer Programs for 2014 FHA, VA, KHC, USDA, RHS, Fannie Mae Loans in Kentucky Visit

Kentucky First Time Home Buyer Programs for 2017 FHA, VA, KHC, USDA, RHS, Fannie Mae Loans in Kentucky

Debt to Income Ratios for A Kentucky Mortgage Loan

580. 720, 680, 600, 620 credit score for a Kentucky Mortgage Loan FHA, VA, KHC, USDA 580. 720, 680, 600, 620 credit score for a Kentucky Mortgage Loan FHA, VA, KHC, USDA

There are two debt-to-income (DTI) ratios on every loan: housing or front-end ratio and total or back-end ratio. The housing ratio tells us what percentage of the borrower’s monthly gross income is allocated toward the monthly principal, interest, tax, and insurance (PITI) payment. The total ratio includes the monthly PITI and all other monthly debts including auto loans, credit cards, child support expenses, student loans and more.
PITI / Total Qualifying Monthly Income = Front-end %
(PITI + All other Debts) / Monthly Income = Back-end %
The DTI ratios are one of the cornerstones of mortgage lending. They help us determine the borrower’s ability to repay the mortgage loan. Historically, borrowers with a higher DTI have had a higher…

View original post 279 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s