Is a 401k loan included in 28/36 debt ratio calculations, during mortgage qualification?

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  1. Reply
    Ado Annie
    May 16, 2011 at 3:21 am

    Yes. Since all calculations are based on your gross, not net, income, then any additional reductions like loan payments need to be included.

  2. Reply
    May 16, 2011 at 4:11 am

    Your 401k has nothing to do with your DTI ratio…

    A 401k statement is required by many lenders though to prove assets.. When qualifying for a mortgage laon, a lender would rather lend to someone who has a 401k with $ 20k, then someone who has $ 0….

    But, as for it haveing to to with the 28/36…It has absolutely NO FACTOR in tyour debt to income ratio…

    Now, are you talking about having a 401k, or do you have a loan that you have borrowed from your 401k?????

    If thats the case, then yes you are right… Any loan that you owe on, and are currently obligated to a payment will be factored into your DTI ratio…

    Are you currently refinancing? Your broker wasn’t able to answer this for you?

    My name is Jason Fry, i work with Providential Bancorp, a nationwide mortgage lender…

    If you would like to work with someone that can answer any and all questions you have, feel free to call me at 312-264-6448, or email me at

    Good Luck!

    Jason Fry
    Senior Mortgage Specialist
    Porvidential Bancorp

  3. Reply
    May 16, 2011 at 5:06 am

    oh yes a 401k can be for piti or down payment

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