What is the Maximum Debt Ratio- (aka DTI) with a Fannie Mae Loan with QM?
Much has been written about how QM will result in more credit denials for conventional Home Buyers due to new Federally Mandated restrictions regarding Qualified Mortgage Loans. QM stands for Qualified Mortgages, a definition made in the Dodd-Frank legislation. It went into effect in tandem with ATR, ATR stands for Ability to Repay. This basically codified how and what lenders must verify, document and consider when qualifying borrowers for Fannie Mae Loans under QM/ ATR. most of the qualification steps remain the same as prior, just more documentation of the individual steps to ascertain effective income. Fannie Mae is a popular name for FNMA, or the Federal National Mortgage Association. i
Fortunately, the legislation gave the "agencies" such as Fannie Mae up to 7 years to come up with their own QM rules. So the quick answer is that the Max DTI (Debt to Income Ratio) for Fannie Mae continues to be 45% for qualified Borrowers.
Under QM, Fannie Mae loans are available up to $417K up to 95% Loan to Value. Fannie Mae Jumbo's. (aka Fannie Mae High Balance, or Super Conforming).
The real point to this post is that you must work with a Loan Professional that knows the guidelines and rules so that you can get the right loan for the home you want. Calll the Loan Pros at VanDyk Mortgage at 866-900-2342 direct or apply online at vandykfunding.com.
We service homebuyers in CA, GA, IN, MA, MI, VA, WA and WY.