FHA Debt To Income Ratios
I get a lot of questions about the maximum debt to income ratios on FHA loans where the borrower is refinancing and saving money and its a manual underwrite. I know that HUD has a formula they use and a maximum debt to income ratio, but they don’t tell anyone what it is.
Based on my experience the maximum tolerable DTI depends on credit and ltv. If the LTV is well below maximum and the credit is good, we will go to a 52% back end ratio. I don’t feel comfortable closing anything over this without a TOTAL Accept. If TOTAL Takes the ratios, we don’t question them.