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What is the ideal debt-to-income ratio for modification?

April 26, 2017debt-to-income modification ratio

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What is the ideal debt-to-income ratio for modification?

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The debt-to-income ratio (DTI) required for modification would vary from one lender to another. However, most lenders would need you to have no more than 45% DTI. Under the government’s modification plan, lenders need to bring down borrowers’ monthly payments to no more than 38% DTI. The government will then help them further reduce the DTI to no more than 31% of the borrower’s monthly income.