VHDA Changes to Maximum Qualifying Ratios
New Changes to the Maximum Debt to Income Ratio 50.00% for all VHDA Loans which was upped from 43%. This will allow more people to qualify with limited income. This is great news! Below are the official changes taking place Feb 2009.
All VHDA loans (including FHA, VA, RHS, PMI or uninsured loans) will be limited to a maximum of 50.00% debt to income ratio when using an automated underwriting Approve/Eligible Decision.
Stated program ratio guidelines will apply for manually approved loans. This new restriction is effective for loan reservations made beginning February 1, 2009.
FHA Plus: (103% Financing)
VHDA will continue to accept FHA Total Scorecard approvals for FHA Plus with the following limitations:
Loans may exceed FHA’s standard ratio requirements of 31% payment to income and 43% debt to income (to a maximum of 50% debt to ratio) only if the applicable credit score is 620 or above.
Credit scores below 620 and non traditional credit must adhere to the maximum 31%/43% FHA program ratios.
This new requirements are effective with loan reservations made beginning February 1, 2009.
2 responses so far ↓
Ernest Robinson // February 7, 2009 at 1:04 pm
I been advised that FHA changed their guidelines, when it comes to DTI. That the borrower has to qualify alone without a co-borrower DTI wise meaning less than 45-50% dti and that co-borrower is for credit qualifying only..
Jo Ann // October 7, 2009 at 8:58 pm
Client has been trying to get a close date on a VHDA loan. The loan officer tells her underwriting needs… to pay bill down/off (whichever) and she does….then they need still something else. This has been going on since last month. Does this sound right? Is this what to expect with going VHDA?