Your search results

What is the standard debt-to-income ratio?

Posted by RCPAP on January 8, 2016
| 0

Providing valuable resources for our Dallas Georgia Homes & Rockmart GA Homes Real Estate Buyers and Sellers is our top priority.

A standard ratio used by lenders limits the mortgage payment to 28 percent of the borrower’s gross income and the mortgage payment, combined with all other debts, to 36 percent of the total.
The fact that some loan applicants are accustomed to spending 40 percent of their monthly income on rent — and still promptly make the payment each time — has prompted some lenders to broaden their acceptable mortgage payment amount when considered as a percentage of the applicant’s income.

Leave a Reply