[quote=UCGal]I’m with FSD on this. I remember my first mortgage the DTI max was low 30’s – this was 1991.
Think about it, DTI is based on gross income. We all complain that taxes are too high – but we all have payroll deductions that take a chunk of our gross pay. Factor in any 401k contributions – even less take home… then allow for 48% of your gross to go to debt (including housing) – you don’t have enough left over for food, clothes, child care, etc…
48% is WAY too high. You’d have to give up retirement savings and basic necessities like gas for your car.[/quote]
Absolutely right, UCGal…unless the borrower is **filthy rich** the 48% DTI limit (even if it was 48% of net income) is way, way, way too high.
