If you have a high debt-to-income ratio but great credit and a stable income, Fannie Mae’s higher DTI ratio limit might help you get approved for a mortgage. But for homebuyers who don’t fit this bill, the new limit is unlikely to help much. Let’s take a closer look at how Fannie Mae’s limit increase impacts your loan-approval chances.

 · The 43 percent debt-to-income ratio is important because, in most cases, that is the highest ratio a borrower can have and still get a Qualified Mortgage. There are some exceptions. For instance, a small creditor must consider your debt-to-income ratio, but is allowed to offer a Qualified Mortgage with a debt-to-income ratio higher than 43 percent.

To determine your DTI ratio, simply take your total debt figure and divide it by your income. For instance, if your debt costs ,000 per month and your monthly income equals $6,000, your DTI is $2,000 ÷ $6,000, or 33 percent.

 · There are ways to get approved for a mortgage, even with a high debt-to-income ratio: Try a more forgiving program, such as an FHA, USDA, or VA loan. Restructure your debts.

1. Jumbo borrowers with high debt-to-income ratios. If you seek a mortgage over the conforming limit and your DTI is higher than 43 percent, you might have to look harder for a lender.

Deferred Student Loans Fannie Mae Fannie Mae – HomeReady – Home Loans – For all student loans, whether deferred, in forbearance, or in repayment (not deferred), the greater of the following to. Fannie Mae – homeready page 3 of 3 Mortgage Insurance. Microsoft Word – Fannie Home Ready Author:

How to Get a Mortgage With a High debt ratio put Up a Large Down Payment. Making a large down payment toward a home can increase your chances. Get a Cosigner. Borrowers with poor credit scores and high debt-to income ratios might not be able. Consider government loan programs. government loan.

Debt-to-income ratios (DTI ratio) are used by lenders to determine how much house you can afford. Most mortgage loans require a max dti ratio of 41%. However, FHA loans are one type of mortgage that allows for higher dti ratios, making it easier for low income borrowers to get approved.

With a high debt-to-income ratio loan, the down payment can be as little as $12,500 (or 5%). The mortgage crisis of 2008 brought these types of loans into question, and it is now a requirement of most lenders for the borrower to purchase mortgage insurance , which protects the lender from default.

Sisa Mortgage Citigroup to buy Grupo Cuscatlán for US$1.51bn – Cuscatlán is a corporate-oriented player also active in mortgage and consumer lending," Raúl Anaya. On the insurance front, Citibank will buy the country’s largest insurer sisa and one of the two.

For example, if you earn $2,000 per month and have a mortgage expense of $400, taxes of $200 and insurance expenses of $150, your debt-to-income ratio is 37.5%.