According to the 1992 HMDA data, the two leading reasons for declined loan applications from African American and Hispanic customers were credit history and insufficient debt-to-income
The introduction and very active promotion of a new product -- called the Neighborhood Homebuyers Mortgage -- which requires only a 5 percent downpayment and allows applicants a higher debt-to-income
ratio than that permitted by standard risk criteria.
Mortgage loans underwritten pursuant to the Expanded Underwriting Guidelines may have higher loan-to-value ratios (LTVs), higher loan amounts, higher debt-to-income
ratios and different documentation requirements than those associated with the Standard Underwriting Guidelines.
If a borrower selects an IO to qualify for a larger loan, their debt-to-income
ratio (DTI) will rise more than that of a non-IO product after the rate reset, all else being equal,' said Suzanne Mistretta, Senior Director, Fitch Ratings.
Mortgage loans underwritten pursuant to the expanded underwriting guidelines may have higher loan-to-value ratios, higher loan amounts, higher debt-to-income
ratios, and different documentation requirements than those associated with the standard underwriting guidelines.
In addition to your debt-to-income
ratio, lenders also look at your work and credit history.
That's especially true if you don't quite fit the mold -- you don't conform to all the underwriting mandates on credit, income, debt-to-income
ratio and other criteria.
To calculate your debt-to-income
ratio, divide your total recurring debt by your gross income.
The lending community has made strides to improve its services and products in large part by lowering credit standards and raising allowable debt-to-income
higher loan-to-value (LTV) and debt-to-income
These loans have even higher debt-to-income
ratios than a typical high loan-to-value mortgage and a three-year subsidy buy-down that reduces the initial interest rate as much as 1.
Meanwhile, the debt-to-income
ratio has nearly doubled, reaching a record of almost 1.