Debt to Income Ratios

June 18th, 2018 10:50 AM by Andrew Walter May CEO

Debt to Income Ratio

Your debt to income ratio is simply a way of determining how much money is available for your monthly mortgage payment after all your other recurring debt obligations are met.


Debt limit

There is generally a debt limit associated with each type of loan, such as a 36% qualifying ratio for a conventional mortgage loan. These qualifying ratios are guidelines. An excellent credit history can help you qualify for a mortgage loan even if your debt load is over and above the limit. Call your ADR mortgage professional to select a loan documentation program that is best for you.

Understanding the qualifying ratio

Typically conventional loans have a qualifying ratio that max's out at 38%. Usually an FHA loan will allow for a higher debt load, reflected in a higher (29/41) qualifying ratio. FHA loans are another type of subprime loan and require a significantly higher mortgage insurance charge (similar to the 3.5% x mortgage balance hit you take on a VA loan). YIKES! And you wonder why VA loans even exist? We can get you one if you like, but often times we can eliminate that nasty 3.5% "government benefit". Call your ADR mortgage professional to select the right program for you. We have saved people $7,000 on a VA loan before (on a $200,000 loan). So, don't think all lenders are created equal. We usually win and save you enough to purchase a new 42 inch plasma. So, save some money. Go Green. Go ADR!

Simply guidelines

Remember these are just guidelines. We’d be happy to pre-qualify you to determine how large a mortgage loan you can afford.  We look forward to helping you buy your dream home. is owned by Andy May Group, LLC and is a state licensed mortgage company in North Carolina and Virginia since 2005 (NMLS #88010, MLO #103418). Since 2005 the company has received Zero BBB complaints and treats customers as family. Family owned and operated from Raleigh, North Carolina the company serves military (VA mortgages), Jumbo, conventional, FHA, USDA and other families looking to obtain the lowest financing costs available. competes on rate and service and is located at 8522 Six Forks Road, Suite 201, Raleigh, North Carolina 27615. Andy May may be reached at 919 771 3379.
Posted in:General
Posted by Andrew Walter May CEO on June 18th, 2018 10:50 AM


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