Here’s trick I’ve used successfully on borrowers that have high debt to income ratios on conventional loans.
It’s virtually impossible to get Fannie Mae to give you an automated approval if your debt to income ratio is above 45%.
One possible way around this – lender paid mortgage insurance.
…With lender paid mortgage insurance – we pay your mortgage insurance in a lump sum up front.
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. (I can help you determine this!)
If so, then this simple change could be your key to loan approval!
That’s it for today!
Have a good day! …and thanks for reading.
Brett
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