Mortgages: How to Get Approved with a High Debt Ratio

When applying for a mortgage, you will hear the term debt-to-income ratio. Most lenders require a ratio that is less than a 40 percent. However, if your ratio is higher, you may still be able to get approved. There are a few key things that you can do:

Have Great Credit

Having a high DTI ratio is a negative factor, you will need to be sure everything else looks great. You will need to demonstrate that you are responsible and that even though you have a high debt load, you can afford it. Make every payment on time and keep all accounts in good standing so that you have good credit.


Federal Housing Administration loans will approve borrowers at a higher DTI ratio. They will go as high as 50 percent, in some cases. The maximum debt to income ratio is 41 percent but can be exceeded with compensating factors.  For example, if you are able to show that you have continuously paid a higher payment, they may be willing to accept a higher debt ratio.

Down payment

If you have a high DTI ratio, then you may need a bigger down payment. A lower loan to value will make your loan less risky, and therefore, a lender may be willing to allow you to have a loan with a higher debt to income ratio.


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