What is the maximum before the end and back end ratios for home loans in California?

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I know that often the ratio is 28% / 36%, but I heard that lenders are in California, has a higher ratio because of high housing costs. Is California lenders use a higher front-end and back end ratios giving mortgages?

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  1. Reply
    May 16, 2011 at 1:30 am

    It actually has nothing to do with the lender per say.
    The ratios will be decided by the AUS or automated underwriting system.
    If you have higher credit scores and maybe more in reserves or for a down payment this will offset the risk of higher ratios.
    I have seen FHA loans approved with ratios as high as 54%.

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