When doing a loan modification to lower a rate that went adjustable. What debt to income ratios are they look?

For your housing expense, they will be looking @ 31-35%. For total expenses, 43-50%.

For FHA DTI (debt to income):
Your housing expense: 31-40%
Total Expense: Up to 50%

However, this depends on the lender. If you are going through your current lender they “may” be more flexible with you. If not, different lenders have different DTI requirements, the above are ours.

Email me if you need additional information.

Both previous answers are incorrect. I own a Loss Mitigation Company with over 50 employees. The DTI’s that are stated below are for refinancing. When it comes to modifying your current loan, the bank will work with you even if your 100% DTI with your new adjusted payment, the bank will work with you to make sure that you save something while still being able to pay them. The lender would much rather still get paid by the borrower, even if it is less than previously agreed payments in order to avoid the cost of taking the home back from you. If they get you to 80% DTI and still have you pay the monthly payment, you both in a sense win. Push for them to extend this fixed rate for atleast several years or possibly indefinitely. Add up all of your monthly expenses and find out how much you need to save for it to make sense. DO NOT BE AFRAID TO PUSH FOR WHAT YOU NEED. Best wishes ; )

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