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What is the maximum debt-to-Income (DTI) ratio for a mortgage?
Lenders require a maximum debt-to-income ratio of 43% – 50% for a mortgage loan. The ideal DTI ratio is 36%. How to get approved with a higher DTI ratio Lenders require a maximum debt-to-income ratio of 43% – 50% for a mortgage loan. The ideal DTI ratio is 36%.
What is the maximum debt to income ratio for conventional loans?
Debt to income ratio for conventional loan programs are capped at 50% DTI. For FHA insured mortgage loans, the maximum debt to income ratios are 46.9% front end DTI and 56.9% back end DTI. There are no front end debt to income ratio for conventional loan.
What are the different types of DTI ratios?
There are two types of DTI ratios, your Front-End DTI Ratio鈥?Your front-end ratio is the amount of your income that does towards your debt before factoring in your monthly mortgage payments. Ideally, your front end ratio should not exceed 26%.
What are the loan requirements for a conventional loan?
Conventional Loan Requirements. Conventional loan programs have stricter lending guidelines than government mortgage loans. Debt to income ratio for conventional loan programs are capped at 50% DTI. For FHA insured mortgage loans, the maximum debt to income ratios are 46.9% front end DTI and 56.9% back end DTI.