One Way Around A High Debt To Income Ratio…

Mortgage and Lending with Berkshire Lending, LLC

small brett pic One Way Around A High Debt To Income Ratio...

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.  

Comments (2)

Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Brett I have a hard time digesting that this is actually helping the situation. The doors are slowly opening for another decade of disaster and I'm the optomist.

May 19, 2015 11:17 PM
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Brett Sampson This is certainly a last ditch approach to take in marginal lending situations. I am sure lenders will adjust to this and before long that will no longer be a solution. 

May 20, 2015 12:46 AM