Sometimes it feels like the “exceptions” are getting rarer every year...
Yeah, I hear you on that. It’s wild how much things have changed since the last crash. I remember refinancing back in 2016 and my DTI was a little over the “ideal” line, but my lender barely blinked because my credit was solid and I had some cash stashed away. Fast forward to now, and it’s like they’re looking for any reason to say no. I get why—they got burned before—but it does feel like the pendulum swung pretty far the other way.
That said, I wouldn’t say it’s *always* an automatic denial if your DTI is high. It’s just… a lot closer to automatic than it used to be. Like you mentioned, local lenders or credit unions sometimes have a little more leeway, but even then, it’s not something you can count on unless you’ve got some kind of relationship or you’re bringing something special to the table. I tried shopping around with a couple smaller outfits last year when rates dipped, and honestly, most of them were just as strict as the big banks.
I do think there’s still a tiny bit of wiggle room if everything else is rock solid—like if your income is about to jump (with proof), or you’ve got a ton of reserves—but yeah, those “exceptions” are definitely unicorns these days. The whole process feels more rigid than ever.
It’s frustrating, but I guess at least we know what we’re up against going in. Better than getting blindsided halfway through underwriting, right?
I keep wondering if the “exceptions” are just marketing at this point. Like, do they really exist, or are they just there to make us feel like we have a shot? I remember back in 2012, my buddy got approved with a DTI that would make today’s underwriters faint. Now it feels like you need to have a perfect spreadsheet life—no surprises, no bumps. Is it just me, or does every lender act like they’re doing you a favor even looking at your file? Maybe I’m just getting cynical...
Now it feels like you need to have a perfect spreadsheet life—no surprises, no bumps.
Honestly, that’s exactly how it feels these days. Lenders used to actually look at the whole picture, now it’s just boxes to check. But I do wonder—has anyone here actually gotten an “exception” in the last couple years? Or is it all just smoke and mirrors now?
Lenders used to actually look at the whole picture, now it’s just boxes to check.
- Got an exception last year, but it took a LOT of back-and-forth and a strong compensating factor (big cash reserves).
- Smaller local banks seem more flexible than big-name lenders.
- Feels rare, but not impossible—just gotta have something that really stands out.
- Ran into this exact thing with a client last spring—DTI was just over the “magic number,” but they had a hefty 401k and zero other debt.
- Local credit union actually listened, but the big banks? Not a chance, just flat-out denied.
- It’s wild how much it depends on who’s looking at the file. Sometimes I wonder if the underwriters even read the notes or just hit decline if a box isn’t checked...
- Definitely not impossible, but man, it’s a grind.