Debt to income ratios for jumbo loans in NYC

[jerryf]

How do debt to income ratios (DTI ratio) really work for jumbo loans in NYC? I recall hearing from a mortgage banker friend that they have to keep jumbo loans on the books, i.e. these loans aren't conforming and can't be sold off and repackaged into mortgage backed securities.

So are big banks in NYC more lenient with jumbo loan borrowers? What exactly do they put into the DTI ratio here in New York City? Is there leeway to go closer to 50%? I know some banks won't even look at debt to income ratios if you have enough assets.

[EllenS]

I am a licensed mortgage broker in New York. All the major banks sell their jumbo products. Some small banks have portfolio products which they keep on the books. Many lenders want a DTI of 43%. Some portfolio products will go above that.

[lower_nyc]

I am a licensed mortgage broker in New York. All the major banks sell their jumbo products. Some small banks have portfolio products which they keep on the books. Many lenders want a DTI of 43%. Some portfolio products will go above that.

Hi Ellen - is it true that some banks will quote jumbo loans at 'loss leader' pricing? I was told recently that some banks will deliberately quote unprofitable IR / APR even if they are underwriting the loan at a loss in order to push out the competition.

[EllenS]

I have not come across a lender who has done loss leader pricing; wish I could.

[lower_nyc]

I have not come across a lender who has done loss leader pricing; wish I could.

How about Wells Fargo?