Debt to Income Ratios: Total DTI and How to Reduce It

Let’s say you’re buying a house and you have calculated your front ratio or the comparison of your proposed housing debt to your usable income. You know your lender allows a 43% total DTI ratio, and your front ratio is an enviable 36%. But your loan officer informs you that your total or “back” DTI… Continue Reading

What Are Compensating Factors?

So, you’re interested in getting a mortgage, but you know for a fact that you’re anything but an ideal candidate. You’ve resigned yourself to a life of renting and living under other people’s rules, because there’s no way you’re going to get your debt-to-income ratio into an ideal place and there’s not a house to… Continue Reading