FHA DTI Guidelines 2019


FHA DTI Guidelines 2019 - Debt to income ratios are the calculations underwriters use to determine whether a borrower can qualify for a mortgage. They are used to determine if you have the capacity to repay your mortgage.

There are two calculations. The first or Front Ratio is your housing expense-to-income ratio. This is your proposed mortgage payment (principle, interest, taxes, mortgage insurance, and home owners insurance) divided by your gross monthly income.

The second or Back Ratio is your total monthly obligations-to-income ratio. This is your gross monthly payment including Mortgage PITI divided by your gross monthly income.

FHA loan requirements include a maximum debt to income ratio. When a borrower applies for an FHA mortgage, they are required to disclose all debts, open lines of credit, and all possible approved sources of regular income. Using this data, the bank and the FHA calculate the borrower's debt to income ratio.

FHA DTI guidelines

FHA maximum debt to income ratio can be over 55%. Most lenders will limit maximum debt-to-income to under 50% and some lenders to 45%. FHA uses an electronic loan decision software that approves your loan. If the decision engine likes your loan it may approve your dti above 55%.


FHA DTI Guidelines 2019

FHA after bankruptcy   FHA after foreclosure   FHA after short sale


On January 20, 2010 FHA announced a new policy to address risk. FHA changed the minimum credit score for new borrowers:

  • FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
  • Borrowers with less than a 580 credit score will be required to put down at least 10%

This has allowed the FHA to better balance its risk and continue to provide financing for home buyers.

FHA requirements include a maximum debt to income ratio. When a borrower applies for an FHA mortgage, they are required to disclose all debts, open lines of credit, and all possible approved sources of regular income. Using this data, the lender and FHA can calculate the borrower's debt-to-income ratio.

  • FHA maximum debt to income ratio can be over 55%
  • Manual underwriting maximum debt to income ratio is 50%

On January 9, 2015 the Federal Housing Administration (FHA) announced the reduction of it's annual Mortgage Insurance Premium (MIP) rates.

FHA reduced the premium from 1.35% to .85% a reduction of .5%.

Combined with low interest rates and the reduction of MIP rates means that it is a great time to buy a home or refinance your mortgage.



FHA DTI Guidelines 2019

Apply Now!

Call us 888.958.4228


FHA DTI Guidelines 2019

FHA purchase FHA refinance FHA 203k loan FHA cash out $100 down loan

FHA loan requirements - ‎FHA loan limits - ‎FHA loans - ‎FHA Streamline


Credit Score Requirements 2019


FHA loans require a minimum 500 credit score to buy a house or refinance.

Want to know if you qualify for an FHA loan? Get pre-approved for an FHA loan online.


Recent Articles

  1. FHA Purchase

    Nov 18, 21 08:42 AM

    FHA purchase loans have been helping people become homeowners since 1934. A perfect credit score is not needed for an FHA purchase. FHA minimum credit score of 580 to qualify for 3.5% down payment pro…

    Read More

  2. FHA Credit Score Requirements 2021

    Nov 02, 21 09:21 AM

    FHA credit score requirements 2021. New borrowers will now be required to have a minimum credit score of 580 to qualify for FHA's 3.5% down payment program.

    Read More

  3. Refinanciar Despues De La Bancarrota

    Oct 27, 21 11:58 AM

    Refinanciar despues de la bancarrota! Préstamo FHA puntaje de crédito mínimo de 500 para calificar para el retiro de efectivo del 80% del el valor de la casa.

    Read More


Call Now, Our Staff is Available!

888.958.4228


Apply Now!