ErikOk 10 Report post Posted April 10, 2013 How do you all usually figure out if a Tenant/buyer can afford the rent? I've always went by gross monthly income times 30% Share this post Link to post Share on other sites
pilot76180 51 Report post Posted April 11, 2013 DTI that lenders look at is 43$ DTI That is GROSS monthly x 43% then deduct the REPORTING debt, such as car payment etc and include the rent. Share this post Link to post Share on other sites
ErikOk 10 Report post Posted April 11, 2013 DTI that lenders look at is 43$ DTI That is GROSS monthly x 43% then deduct the REPORTING debt, such as car payment etc and include the rent. So say Gross monthly pay is $3200.You would do $3200 x 43% = $1376. Then you are saying you would subtract stuff like credit card debt, car payment, AND rent amount? By doing it this way, are you trying to see if you are going over or have some left over from the "Gross monthly pay X 43%"? I have followed the Gross income x 30% like shown here http://www.teachamantofish.biz/rental_calculator.cfm , which works out to 30%. I am guessing that the way you show is more accurate by accounting for all debt. Is this the thought behind the 43%? Share this post Link to post Share on other sites
pilot76180 51 Report post Posted April 18, 2013 Lenders look at 43% DTI (yes there are some variables...but...just look at 43% DTI) Take gross monthly.. Say 3200zx 43% = $1376NOW..subtract the REPORTED MONTHLY PAYMENTSCar...$300Credit cards $125Student loans...$150= $801They need to stay under $800 a month. Share this post Link to post Share on other sites