DTI Ratio and Reserves When Applying for a Mortgage

Credit and mortgage advice Forums Home Mortgage DTI Ratio and Reserves When Applying for a Mortgage

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      Hi Everyone- I*have posted a couple of time but usually just lurk but I have a couple of questions about the loan process.


      1.* I have researched online that the DTI ration should be no more than 25% front-end and 36% back-end.* Is this DTI standard for conventional mortgages as well?* Also I took a loan out on my 401k last year when I was going through a divorce and am currently paying back the loan (taken from my pay) $112 monthly.* Will this monthly loan payment be included in my back-end DTI when applying for a loan?


      2.* I have also seen mention that the banks these days require reserves when applying for a mortgage.* Is there a certain amount of reserves (exclusive ot the*down-payment)*that you a required to have liquid when applying?



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