Conventional Mortgages Getting Easier to Qualify
Getting a conventional mortgage, is getting a little easier for people with all kinds of existing debt - including student loans - to qualify for mortgages. The change will kick in on July 29 when the debt-to-income ratio (DTI), a measure of a borrower's capacity to make payments, rises to 50% from the current 45%.
To understand what that looks like, @ 45% DTI, a household that earns $5,000 a month can have payments totaling $2,250.
But when the ceiling is raised to 50% that same household can now have payments up to $2,500 or an additional $250 extra per month.
For more information contact Todd Probasco Mortgage Banker NMLS 232536 American Financial Network 708.205.2983 www.toddprobasco.com
