For conforming loans you may see lenders offer a qualifying ratio of up to 50% DTI. Doing your research on what different loan programs offer while shopping around for rate is recommended.
When calculating the cost of home affordability, these two aspects usually come into play—how much mortgage you can afford, and how much cash you can bring to the table for closing.
Some Jumbo loan programs may not have a PMI requirement even with less than 20% down. These higher loan amounts can call for 10% down with no PMI requirement, but that means shelling out cash for a larger loan. Closing day can be an expensive one.
Doing your research upfront such as reviewing your credit score and becoming familiar with the different loan programs offered for your debt-to-income ratio qualifying range is generally considered to be a good idea.