Debt to Income Ratio, and using multi families to better quality.

[Gregory Greene]

Hello, I recently listened to a discussion regarding DTI ratios, and I did some analyzing. I noticed that I may have a hard time financing property because of my student loans, and car note. I have 2 years left on my car note, but student loans I have not started paying on yet. I'm worried that this is going to make things hard when it comes to investing in a multi family unit with a FHA. Is there any advice anyone could give to better help me qualify for lending. I'm planning on owning my first property in AZ. Thank You!

[Lanny K.]

@Gregory Greene there are actually two DTI ratios that lenders take into account, Front-end and Back-end DTI. A quick search will guide you to better understanding the differences. The qualified mortgage dot org web site has a good description. From there you can find online calculators to help you analyze your personal finances in order to know what you may need to pay off before qualifying for your first investment.

Best of luck!