Title: High DTI means automatic denial… right?
Didn’t even ask for proof of reserves till late in the process. Feels like the days of explaining your full financial picture are gone.
That’s been my experience too, and honestly, it’s frustrating. The “human element” is pretty much out the window with most big lenders now. It’s all about the algorithm—DTI, credit score, check the boxes, move on. I’ve had deals where I was putting 30% down and had six figures in liquid assets, but they still got hung up on a slightly high DTI from a rental property that wasn’t even negative cash flow. No one wanted to hear the story behind the numbers.
That said, I have seen a few smaller local banks or credit unions who’ll actually look at the bigger picture if you push for it. They’re rare, but they exist. Most of the time though? If you’re outside their DTI range, it’s a hard stop. It’s not fair, but that’s where we are right now. Just gotta keep hunting for those exceptions... they’re out there, just not easy to find.
I swear, getting a mortgage these days feels like trying to impress a robot that’s never seen a bank statement. When I applied, my DTI was juuust over the line because of my student loans (thanks, college), and the lender basically acted like I was trying to buy a mansion with Monopoly money. Didn’t matter that I had a decent down payment and zero other debt. Step 1: get hopes up. Step 2: get crushed by an algorithm. Step 3: eat ice cream and start googling “credit unions near me.”
Yeah, the DTI thing is brutal right now. Lenders barely look at the bigger picture—just the number. I’ve seen folks with solid cash flow and assets get denied over a couple percentage points. Ever try local banks or portfolio lenders? Sometimes they’ll bend more than the big guys.
Lenders barely look at the bigger picture—just the number.
That’s been my experience too, and honestly, it’s frustrating. I’ve had projects with strong equity and rent rolls, but if the DTI’s even a hair over their threshold, it’s a hard no. Local banks are a mixed bag—sometimes they’ll listen, sometimes they’re even stricter. Guess it just depends who’s sitting across the desk that day...
High DTI Means Automatic Denial… Right?
I’ve been running into the same wall lately. It’s wild how they’ll look at one number and that’s it—no room for the full story. I mean, I’ve got a stable job, decent savings, and I’m not out here buying a mansion. But my student loans tip my DTI just over their line, and suddenly I’m some kind of risk. The last lender I talked to barely glanced at anything else. Didn’t matter that I’ve never missed a payment in my life.
Honestly, it feels like it’s more about checking boxes than actually understanding people’s situations. Maybe there are some unicorn lenders out there who take a broader look, but I haven’t found them yet. It’s almost like you need to have zero debt and a six-figure salary just to get in the door... kinda makes me wonder who these rules are really helping.
