Subprime loans and high Debt To Income (DTI)ratios consists of your gross monthly income, liabilities and your monthly housing payment, including taxes and insurance. High DTI ratios can be classified in the subprime loan category since they exceed 45%.

Most sub prime lenders will stop at 50% DTI but there are some that will go as high as 55%. Keep in mind however that sub prime or conventional Debt To income Ratio does not take into account bills like cell hone, gasoline, food and other daily expenses.

 

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