| Zero Down
Payment
Credit
Income
Ratios
Loan Limits
Interest Rates
Buyer Eligibility
Property Eligibility
Underwriting
Loan Process
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Mortgage Debt To Income Ratios
The mortgage debt to income ratios allowed for this 100 percent loan to value
mortgage are fairly flexible considering it requires no money down.
The ratios are set at 29/41 unless the home being purchased was built to
the 2000 energy code in which case the ratios would increase to 31/43.
However, ... However, ... The underwriter can issue a waiver with
documented compensating factors.
Compensating Factors:
- The principle, interest, taxes, and insurance (PITI or more commonly
know as the new house payment) is less than what the applicant is
paying currently for rent.
- A credit score over 660
- Substantial cash on hand after the closing
- Accumulated savings
- potential increase in income due to specialized training or
education in their profession
- Conservative use of credit
- Long job history
Student LoansStudent loans must be counted in the ratio
EVEN IF they are deferred.
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