There are 2 types of Debt-to-Income ratios (DTI) Greenway considers when qualifying you for a mortgage:

• Front-End (also known as the Housing Ratio)
• Back-End (also known as the Total DTI).

How is each calculated? Watch this short video by The Mortgage Expert, Erin Carvelli.

 

DTI or Debt-to-Income Ratio is the percentage of a borrower's gross income available for paying your bills.

The Front-End Ratio

• Also known as The Housing Ratio
• The ratio of gross income to the borrower's mortgage payment including PITI

The Back-End Ratio

• Also called the Total Ratio
• This is the ratio of the borrower's gross income to all expenses. Including:
  • Mortgage with PITI
  • Consumer debt such as credit cards and car loans
  • Student loans
  • Alimony and child support

Read our in-depth post here

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Additional Resources

• Greenway's $100 Down Payment Mortgage with Renovation Financing
• [VIDEO] Q&A with ETE (FB Link)
• [VIDEO] 5 steps to mortgage qualification (FB Link)
• (BLOG) Why Pre-Approval Should Be Step One for First-Time Home Buyers
• Get pre-approved: ecarvelli.greenwaymortgage.com/prequalify
• Mortgage payment calculator
• Erin's mobile app: ecarvelli.mortgagemapp.com
  • With an on-the-go payment calculator and pre-approval request
  • Or text: ETE to 36260
• Website: smt.greenwaymortgage.com
• GreenwayMortgageAtTheShore on Facebook.
• GreenwayMtgSL on Twitter
• LinkedIn: Erin Carvelli

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Want To Know More About Erin, Her Team and the Mortgage Process?

Check out her All Things Mortgage page!

She's posted tons of useful resources and keeps it updated

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Are you ready to take the next step?

It's time to get pre-approved with Erin the Expert!