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Posted: Mon Oct 06, 2008 2:14 pm Post subject: Do lenders allow 40% TDR

Do lenders do 40% + Total Debt Service ratio and and 32%+ Gross Debt Service? Internet seems to show it as a benchmark that all lenders follow, but its hard to believe.

What are the actual ceilings lenders go for?

gmakerley · Posted: Tue Oct 07, 2008 8:20 am Post subject:

we have all seen extraordinarily high ratios such as mentioned by marty. HOWEVER, some have not made it into the 2008s yet, i guess.

no longer will automated underwriting allow a back ratio as high as 65% - this has been done away with. i've been seeing mid-50s as the high point, and this with borrowers carrying scores as high as 760. i suppose if someone came by with an 800+ score, there might be more wiggle room on ratios, but those unbelievably high ratios have gone the way of the subprime loans.

the numbers our guest has mentioned are certainly acceptable in the market these days, and probably lower than need be.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

On most loans there is no set limit for the DR. It is taken into consideration with other factors such as credit, reserves, etc. If you have good credit, you shouldn't have much trouble getting approved at that level.

gmakerley · Posted: Tue Oct 07, 2008 11:37 am Post subject:

good answer, lisa

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Do lenders allow 40% TDR