How You Can Get Mortgage Insurance With A Higher DTI…

Did you know that it is possible to get mortgage insurance on a conventional loan with a debt to income ratio higher than 45%?

…it’s true!

For a long time you couldn’t find an MI company willing to write mortgage insurance on a conventional loan with a DTI higher than 45%.

Now there are some companies that will.

…However, the caveat is that you must receive an Approve / Eligible on the file when it’s run through the automated underwriting engine.

Nowadays this is a little more tricky than it used to be. Fannie Mae has tightened their underwriting in their automated engine.

Sometimes it’s hard to get an Approve / Eligible with a DTI over 45%. However, it can be done.

So, if you have a debt to income ratio a little over 45%, and you have been told it’s impossible to get MI with your DTI – that’s not necessarily true.

Tell your mortgage loan officer to run it though the automated underwriting engine and see if it will give him or her an approval.

If they do get an approval they should be able to do the loan. If they can’t give me a call! …I may well be able to help you!

That’s it for today!