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“High DTI means automatic denial”… right?

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georgefisher
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(@georgefisher)
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“Sometimes it feels like there’s no rhyme or reason... just depends who’s looking at your file that day.”

Honestly, I’ve felt that too. When I bought my last place, my DTI was just over 45%. I figured it was a lost cause, but my lender pushed it through because I had a long work history and a decent chunk in reserves. It’s frustrating how subjective it can be. The guidelines are there, but in practice, there’s definitely some gray area—especially with strong compensating factors. It’s not always fair, but that’s the reality.


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nalatrader
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Title: High DTI means automatic denial… right?

“The guidelines are there, but in practice, there’s definitely some gray area—especially with strong compensating factors.”

That’s been my experience too. I had a lender once tell me, “If you’ve got enough cash in the bank, we can make almost anything work.” Not exactly comforting, but it does show how flexible things can get. Sometimes it feels like a bit of a lottery, honestly. I guess it comes down to who’s reviewing your file and how much risk they’re willing to take.


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mskater73
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I get where you’re coming from, but I wouldn’t bank on flexibility if your DTI is way over the limit. Lenders might bend a little for strong borrowers, but there’s only so much wiggle room before underwriters just say no. I’ve seen folks with solid assets still get denied because the numbers just didn’t add up. It’s not always a total lottery—sometimes it really is just math.


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natestone693
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“sometimes it really is just math.”

That’s been my experience too, unfortunately. When I tried to refi last year, my DTI was just a hair above their cutoff—even though I had a decent chunk in savings and a long work history. The loan officer was sympathetic but basically said the underwriter’s hands were tied. I thought maybe they’d make an exception, but nope. It felt pretty rigid, honestly. Maybe some lenders are more flexible, but I wouldn’t count on it if you’re way over the line.


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Posts: 21
(@kennethmusician3452)
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It’s frustrating how little wiggle room there is on DTI, even if the rest of your profile looks good. Some lenders do manual underwriting, but honestly, those exceptions are few and far between unless you’re talking about portfolio loans or credit unions with special programs. I’ve seen people with solid assets and even higher incomes get the same “computer says no” treatment. Sometimes it really is just the math... but it still feels a bit unfair when you know you could handle the payment.


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