DTI requirements clarification needed

[Justin Mespelt]

I'm in need of clarification as to what banks look at as income when calculating your DTI ratio, specifically for a primary residence HELOC. First, around 38% of my gross W2 income the last 2 years was earned working overtime. Will a bank take that into account as income, or is the ratio only looking at base pay? Secondly, for 4 years before last fall, my wife was self employed. Beginning last fall she is a substitute for multiple school districts. She works steadily, just not with any single employer or on a set schedule. That makes it almost impossible to verify income with less than a full years taxes to look at.

What front/back ratios are banks looking for when applying for a HELOC?

Thank you