DTI Relief

Debt to Income ratios too high? How about some relief?  – Non Fannie/Freddie!!! We make the guidelines!  Portfolio ARMs only.

•    Asset Depletion – DTI problem solver by using assets as income.

•    Depreciation – add it back.

•    Losses – not likely to recur are almost always excluded.

•    One-Time Expenses – add back large cash costs not likely to recur.

•    Capital Gains – if there is evidence to support a continued trend, we can include them.

•    Schedule E – take income straight from the 1040s…we do not take

•    Payments Paid by a Business – add back in most circumstances or exclude from DTI if business has been paying

•    Rental Income – no 30% rule to use rental income on departing home (home must not be underwater).

•    Exclude Departing Home Mortgage Payment – with genuine intent to sell, we exclude the departing home’s payment from DTI with evidence of sufficient reserves.

•    Alimony and Child Support – we deduct it from income.

•    Deferred Student Loans – if deferred 12 months, we exclude from DTI.