Believe it or not it’s still very hard to get a Conventional loan approved with a debt to income ratio higher than 45%.
I wanted to give you one little trick you can use to help out with your debt to income ratio.
…Use lender paid mortgage insurance – have your mortgage lender pay your mortgage insurance in a lump sum up front. It’s called Lender Paid Mortgage Insurance.
This way there is no monthly mortgage insurance.
No monthly mortgage insurance means a lower debt to income ratio!
…You will want to make sure getting rid of the monthly MI will be enough to push you under the 45% limit.
If so, then this simple change could be your key to loan approval!
That’s it for today!
Have a good day today! …and thanks for reading.