Consumption and Real Estate
Is a 401k loan included in 28/36 debt ratio calculations, during mortgage qualification?
Question : Is a 401k loan included in 28/36 debt ratio calculations, during mortgage qualification?
mortgage qualification
Best answer:
Answer by Ado Annie
Yes. Since all calculations are based on your gross, not net, income, then any additional reductions like loan payments need to be included.
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#2 written by frymail2005 1 year ago
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 jasonf@providential.com..
Good Luck!
Jason Fry
Senior Mortgage Specialist
Porvidential Bancorp
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oh yes a 401k can be for piti or down payment