Generally, when most borrowers indicate that they will not qualify for a loan, their reference is to the adequacy of income, or a high income-to-debt ratio.

Our assessment of risk is measured basically by determining whether the borrower has an adequate amount of stable income to support the mortgage payment and other financial obligations. The desirable ratios will vary depending on the loan type. For example, on a FHA-insured mortgage or a VA guaranteed loan, the ratios are 29%/41%. On a conventional loan, the ratios are 28%/38% (programs with higher ratios are available). The higher the ratios, the greater the risk which reduces the borrower’s chance for approval.

Copyright © 1997-2007, Prime Lend America Mortgage Corporation. - All rights reserved.
Please Read our Privacy Statement
Equal Opportunity Lender and Employer
Loan programs, rates and fees subject to change without prior notice.
A federal approved Lending Institution

Design and Hosting by DMNI