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Click-Throughs; Why Borrowers Qualify For Larger FHA Loans? 56.99%

In our recent monthly newsletter, we measured “click-throughs” for our various articles. Interestingly, the mortgage-related article about debt ratios got the most views.

Two things: (1) Be sure to measure your click-throughs when you email newsletters; and (2) Here’s something mortgage related:

The same borrower can often qualify for a much higher loan amount if he pursues FHA financing instead of conventional.

We sometimes pre-approve borrowers for both FHA and conventional financing if they are looking at both Condos (that are not FHA approved) and Single Family Residences. And Realtors invariably ask us why the FHA pre-approval is so much higher.

FHA allows for debt ratios as high as 56.99%, while conventional financing usually caps out at 44.99%. Higher allowable debt ratios result in larger pre-approval numbers.

FHA’s smaller down payment requirements also help.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646