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90% of the banks can go up to at least 45%. If you have only spoken to Bank Of America that might be your problem.
45% is the ceiling, 42% may be a product specific cap your running into. 50%+ is still closeable with strong compensating factors. (Equity/reserves/etc.,)
If you are paying PMI on your new 90% loan, which I expect that you are, 41% may be the debt ceiling of the MI company, based on your credit score. BoA has NEVER been a pricing leader, as far as rates are concerned. Talk to some friends about referrals to their favorite mortgage lender. Chances are pretty good that you’ll find a lower rate, with the same fees, therefore lowering your debt ratio!
I’m looking to purchase a new home. Even though I’ll be renting out my current home, I’m going to have to pre-quailify for both mortgages. Anyway, I called BOA and my DTI is 43% with both loans and I really can’t pay anything off (becuase I have very few loans, no car loans, etc). Their max DTI at 90% LTV is 42%. Do you guys know of any banks that can do 45% DTI on going 90% LTV? I’m trying to make moves on Monday becaue I know that rates have a chance of going North. Thanks guys!