Debt to Income Ratio

Hey all,
I am trying to find the right mortgage for my first investment home. One of the problems I am having is my debt to income ratio. If I give you a little portfolio of my income and expenses, it would be of great help if one of you mortgage savvy people out there could give me some insight on what kind of mortgage I should be shopping around for.
Gross monthly Income: $6833.00
Primary Residence Home Mortgage, Taxes, Insurance: $1400.00
Other monthly debt: $910.00
Investment property purchase price: $96,800
Income that property produces on a monthly basis: $1150.00

Any insight on which kind of mortgage to start pursuing would be great.

Thanks all!

You know the question that will be asked: “How’s your credit?”…you might as well ‘come clean’ now — LOL…


My credit score is 751 and my husband’s is up there as well. I also claim self employment on my taxes. I don’t know if that tid bit of info is at all relevant…but…

Yes, it’s all relevant…I’m not a lender or a broker but I can’t see any reason that you shouldn’t get financed…like, this afternoon.

Your Debt/Income is about 30% (if you include 75% of the rental income like most lenders do), your income is high, your credit scores are very good…

I’ll bet there are some folks here that would ‘hold’ for you!


I am so sorry, but but I truly don’t know anything about this stuff. What does “hold” mean, and if there are any lenders out there that can get me a no money down deal with all the information I just provided, I would greatly appreciate their contact information.
My brother owns the home and i is valued at $121,000.00
He is willing to sell it to me for $96,800 (80% of its full value) It would be a non owner occupied duplex. I have no money for a downpayment or closing costs, and my brother said he is willing to do a seller soncession to pay for the closing costs.
Any contacts would be greatly appreciated.
Thanks again Keith for all your replies,

“hold” = “finance”

My lender would do this deal for me at 100% (it would cost me extra, I finance at 80% or less)…

At 100% you might also have to pay PMI…but, I would think this is a VERY do-able thing…

Where are you located?


The property is located in Beaver, Pennsylvania. Zip code 15009.
How much does PMI usually run a month?

Thanks again for all your hekp Keith!


I don’t see any reason why you can’t go Conforming 100% Full Doc. DTI should be no problem.

Like I said, I’m not a “money guy” but if what he says is true, I would think that lots of lenders would be glad to do business with him…

Where have you tried, JayDee?

PMI is usually a factor of cost, so it depends on the amount of the loan being protected…probably about $40 - 150 depending on the amount…butit’s like stting your money on fire…it’s not deductable on your income taxes and does nothing to protect you.


100% LTV is more than possible, a lot of times you can even roll in the closing costs. You’ve got good credit and not be DTI, more than doable…

Joleen is right. Also, avoid PMI with TAMI (Tax Advantage Mortgage Insurance) , essentialy a higher interest rate (tax deductable).