Debt to Income Ratio on Home Loans

When an Arizona mortgage lender evaluates a prospective borrower's mortgage application, one of the main elements used to approve or decline each borrower is something called a "Debt to Income Ratio." What is Your Debt to Income Ratio?  Lenders use your Debt to Income Ratio (or "DTI" for short) to analyze your income and debt.   Each different type of Arizona mortgage (Conventional, FHA, VA, USDA, Jumbo etc..) sets a maximum allowable Debt to Income Ratio limit which is expressed as a … [Read more...]