The industry standard DTI (debt to income) ratios to get approved for a mortgage loan is 28 /36% of your gross income. If you are having a manual underwrite of an FHA loan, this is the typical ratios.
The automated system (electronic approval) will give approvals higher than 50%. We've seen at least 55% and some processors have had in the hight 50% for the backend ratio.
How is this?
One: Anytime you have additional compensating factors, the higher the likelihood of getting a higher than 50 DIT approval. Without having compensating facotrs, the likelihood decreases to have ratios greater than 49.99%
Two: The bank /lender that is funding the loan has to allow for the true DU approval without additional overlays.
Most banks and credit unions have a strict set of underwriting guidelines that will not allow the backend ratio to be greater than 49.99% with their automated underwriting.