Great post, informative.  I'll keep reading, I didn't even know a borrower could qualify at 65% DTI!!  I was under the impression always that it was around 42% max, and some alt programs up to 50%@!

Jonelle, 

DU is a funny character.   It loves assets & likes equity.

Keep coming around! 

D. Bass - Again, an extremely informative post.  I am passing along all of your blogs to the rest of my office.  We were a predominantly Sub-Prime shop (I wonder why we are not anymore?) and not nearly as well versed in DU as we should be.  We are getting there, though.  Thanks.

Steven,

Thank you very much! Keep coming around...

D. Bass good answer.  It is much easier to get the DTI down 2% then to try to qualify under manual underwriting guide lines, which further reduce the DTI any way.

Thanks George!

D.B. I learn a bunch from the stuff you post. Let me ask part two to this question. When you get the A/E at 65% what is some of the big things?

Credit Score
Assets
Job Time
Number of trade lines
Types of prior credit
Purchase or Refi

Thanks again

Tony 

D

You are so right... I cam e from the subprime world and still find it hard to believe we can get 65 DTI to fly

D- Great to see "one of you" on here!  I had one that went throught at 67% on a LEVEL 3, with a significant benefit to borrower (reducing mortgage payments by $1200 per month)... make sense right??

D. Bass,  Great advice. 67% wow.  I know DU is pretty wild stuff. I tell my clients it works on compensating factors. You have a high DTI but you have a ton of assets that can work.. Little assets and a high DTI.. most likely not.

Hey Tony!

If you get the DTI at 65% (i'm thinking you meant DTI when you wrote A/E...let me know if I read it wrong) credit and job time are going to be major factors (this is just my opinion and experience).  Assets are sometimes easy, if you have a borrower with pretty good credit because you can usually get away with 2 months reserves.  Also...when I say job time I mean: no gaps, at least a 2 year history working.  Job changes show an increase or the same salary. 

I haven't met the genius yet to figure out the calculation Desktop Underwriter uses...but when I do I'm locking him/her in a room writing down everything they say before I let him go!!!!!!

I hope this was helpful Tony....and like I said: If you need me to look at anything just email me (its the least I can do for my first subscribers).

Rick- You'd be surprised at what you can make fly if you package it right.

Katrina- Your absolutely right, reducing current monthly payments is another way to get an accept.  Thanks Katrina, I hope you keep coming around.  Any questions email me.

Matthew- It's one of the Matthews!  Thanks for commenting.  Keep coming around.

Hey DB!

Sorry for the typo and thanks for the great answer

Tony