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WHAT IS THE TYPICAL LOAN TO DEBT RATIO NEEDED TO ACQUIRE A LOAN?

April 26, 2017acquire debt loan needed ratio

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WHAT IS THE TYPICAL LOAN TO DEBT RATIO NEEDED TO ACQUIRE A LOAN?

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Fannie May has a standard ratio of 28/36, meaning that no more than 28% of borrowers gross income can be applied to pay for housing expenses or PITI (Principal, Interest, Taxes and Insurance) and no more than 36% of borrowers income can be used to pay all debts, including PITI and consumer debts. Different lenders offer different programs with substantially more aggressive ratios.