Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one-way lenders measure your ability to manage the payments you make every month to repay the money you have borrowed.
To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out. For example, if you pay $1500 a month for your mortgage and another $100 a month for an auto loan and $400 a month for the rest of your debts, your monthly debt payments are $2000. ($1500 + $100 + $400 = $2,000.) If your gross monthly income is $6000, then your debt-to-income ratio is 33 percent. ($2000 is 33% of $6000.)
Evidence from studies of mortgage loans suggests that borrowers with a higher debt-to-income ratio are more likely to run into trouble making monthly payments. Most known lenders cap you at the 43 percent debt-to-income ratio, as that is the highest ratio a borrower can have and still get a Qualified Mortgage.
There are lenders that will only accept loans with a 43% debt to income ratio, but we have several lenders that will accept a 56.99% DTI for FHA, 64.99% of VA and 49.99% for Conventional, Jumbo and Alternative loans. This is a huge difference in your purchasing power.
Furthermore, we let you know the maximum payment you qualify for and we give you access to our mortgage payment and loan estimate calculator, which in turns lets you find properties that are substantially more expensive than most prequalification letters.
Use our FREE Instant PQ to find out how much you can qualify for with us, and then calculate the payment for any property you are interested to find out if you qualify, regardless of what your lender told you! If the payment is lower than the number Instant PQ told you, then you qualify!
How can we do this while others can’t?
Bluecastle Lending is a Mortgage Broker, and this plays a very important role in your mortgage financing. Imagine you want to buy a pair of jeans. You go to the Levy stand-alone storefront and either they are going to have what you are looking for, or not. If they don’t, Levy store is out and you will have to fulfill your jean need somewhere else. You have to start over.
However, if you would have gone to a shopping mall and had a personal guide (instead of a Levy salesperson) that guide could take you to all the jean stores that match what you are looking for, you would find your pair of jeans without issues.
The Levy stand-alone storefront is just one Bank, and you either fit in their lending profile or you don’t. The shopping mall is Bluecastle Lending, who also guides you through the mall, find the best jean according to your body type and specifications, and take you directly to that store without issues or delays so you can enjoy your purchase right away!
Give us a call at 954-866-0000 and speak with one of our qualified licensed mortgage loan officers. You are never under any obligation to use our services, but at least you will know how much you really qualify for!