Debt to Income Ratio Questions, Max Ratios.

[Account Closed]

Ok, so I have 4 properties to my name. I think I am figuring my DTI correctly, but am not 100% confident. My wife and I just moved to a new area and are planning to purchase a new house in the area, have one already under contract. My mortgage loan officer said we are well in the clear for a new loan, but I am not so sure. Could you help me with the numbers? I have read in a few places that the DTI Ratios are just guidelines, if that is so, what is the absolute max they will let you go?

Job Income 6911 bt
House 1 -262
House 2 94
Duplex 840
House 3 397

The House numbers are =(Rent * .75) – Mortgage

My total mortgage numbers are 4007 a month, Total income 7980
So this means to me, I am already at 49%~50% DTI Ratio?
Will most banks let me go further over this number if my wife and I have excellent credit?
If so, what is the max you have heard of? Thank you so much for your replies; I haven’t been able to find this information anywhere.

[Jeff S.]

Your gross income is your personal gross plus 75% rents-PITI.

Take that number times 28% for a conservative, conforming coventional loan for PITI (principal, interest, taxes, insurance).

28% of 7980 is 2234. The important number is 36% for your personal debt and PITI for home only. If your personal debt is low that is a plus and can go a little higher PITI.

If you have a mortgage amt and taxes and est. insurance, can work backwards.