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.