FHA DTI limits

[Will McVeigh]

Are the FHA DTI limits flexible? On their website it says "maximum ratio is 43%."

My DTI is around 43% without the additional loan payment. Assuming I could get it settled it would be just over 43% after the loan with rental income. Is it possible to get this waived?

[Jerry Padilla]

@Will McVeigh 

The maximum DTI for a credit score of 600-620 is 43%.

Depending on your circumstance they can go higher if you have decent credit and assets. 

[Dan Mackin]

Are you saying your DTI with the loan will be over 43% if you include the rental income that will be coming in? Have you been a landlord for 2 years already?

[Stephanie Cederdahl]

Yes, FHA DTI limits are more flexible than conventional. If you are close to the 43% you should be able to find a bank that will loan to you, especially if you have good credit and assets. I have seen many FHA loans approved in the 50% range. It all depends on the bank's automated system and whether an underwriter is willing to loan to you based on your credit, assets, debts, etc...

[Ryan Dossey]

One thing I will tell you is SHOP around. If one bank tells you no. There is another one that will probably tell you yes.