debt ratios for fannie mae freddie mac loans 2015

Note: The lender is not required to obtain a new credit report to verify the additional debt(s). Monthly payments for other recurring monthly obligations and Monthly alimony, child support, or maintenance payments that extend beyond ten months (alimony (but not child support or maintenance) may instead be deducted from income, (see B3-6-05, Monthly Debt Obligations) Monthly payments on lease agreements, regardless of the expiration date of the lease Monthly payments on installment debts and other mortgage debts that extend ten months or less if the payments significantly affect the borrower’s ability to meet credit obligations Monthly payments on installment debts and other mortgage debts that extend beyond ten months The qualifying payment amount if the subject loan is for a second home or investment property (see B3-6-04, Qualifying Payment Requirements)

If the subject loan is a second home or investment property, use the mortgage payment (including HOA fees and subordinate lien payments) or rental payments (see B3-6-05, Monthly Debt Obligations If there is a non-occupant borrower, use the mortgage payment (including HOA fees and subordinate lien payments) or rental payments (see B3-6-05, Monthly Debt Obligations) If the subject loan is the borrower’s principal residence, use the PITIA and qualifying payment amount (see B3-6-03, Monthly Housing Expense for the Subject Property) The housing payment for each borrower’s principal residence

The total monthly obligation is the sum of the following: Government mortgage loans - lenders must follow the requirements for the respective government agency. Non-occupant borrowers - the maximum ratio is lower than 45% for the occupying borrower for manually underwritten loans (see B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction) and High LTV refinance transactions - except for loans underwritten under the Alternative Qualification Path, there are no maximum DTI ratio requirements (see B5-7-01, High LTV Refinance Loan and Borrower Eligibility) īorrowers who do not have a credit score - the maximum ratio may be lower for manually underwritten loans and DU loan casefiles (see B3-5.4-01, Eligibility Requirements for Loans with Nontraditional Credit) Fannie Mae makes exceptions to the maximum allowable DTI ratios for particular mortgage transactions, including:Ĭash-out refinance transactions - the maximum ratio may be lower for loan casefiles underwritten through DU (see B2-1.3-03, Cash-Out Refinance Transactions)

Debt ratios for fannie mae freddie mac loans 2015