One of the trickiest parts of preparing your Wells Fargo loan modification application is making sure that your debt ratio will pass the guidelines for approval. There are actually two calculations that the bank performs, and it is critical that your financial worksheet show the right amount of monthly income, monthly expenses and assets in order to meet the criteria.

Debt Ratio Calculation Explained:

Front End Ratio Requirement:  This figure represents how much of your household gross monthly income goes towards your housing expenses.  This includes the mortgage payment, property taxes, homeowners insurance any applicable HOA dues.  The requirement is that your current debt ratio be greater than 31%-so divide your total housing expense by your total gross income to make sure it is greater than 31%.  Verify your own figures with the Loan Modification Calculator, a system designed specifically to assist borrowers with this process.

Back End Debt Ratio:  This calculation represents the percentage of your household gross monthly income that goes towards all of your expenses-including the

Exact Requirements

mortgage.  So total up everything you spend each month-groceries, utilities, insurance, auto expense, etc and divide that figure by your total gross household income to arrive at the backend debt ratio percentage.  While there is no maximum percentage criteria, the goal is to show that the current mortgage is unaffordable and that you can’t make ends meet each month.  Use the Loan Mod Calculator to compute your debt ratio and show you the acceptable cash flow figures too.

If you know ahead of time that your monthly income and expenses will not pass the Wells Fargo loan workout guidelines, then you will be able to make any necessary adjustments before you submit your RMA for for final review.  The most important part of the entire process is to provide the bank with a perfect application-and unless you know what is required you don’t have much of a chance of getting it right.

Get the real answers you need-use the # selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod

Calculator Incl-Download immediately!

Calculator.  This easy to use program will instantly compute and display your debt ratio, income requirements, cash flow, new target payment and loan terms.  Visit MyLoanModificationCenter.com today for more information.

When you apply for a Wells Fargo loan modification, you will be required to complete the financial worksheet form-and this is the information that the bank uses to determine if you pass the debt ratio requirements.  You need to understand how this calculation works so that you can be certain to complete your loan mod forms correctly.

DEBT RATIO CALCULATION EXPLANATION

There are actually two calculations Wells Fargo will look at on your loan modification financial worksheet, the first one is the most important one because it determines your initial eligiblity.

1. Your current mortgage expense must exceed 31% of your total household gross income in order to qualify for a loan workout.  The reason for this is because your new modified payment will be targeted to achieve a 31% of your income-the bank deems this to be an affordable amount, if your current payment is already that low, then a loan workout will not help you.
2. The second debt ratio calculation is your overall expenses each month-including your mortgage payment, household expenses, auto, etc.  There is no standard guideline for this percentage but you need to show that you cannot make ends meet each month due to the current mortgage payment being so unaffordable.

DEBT RATIO FORMULA EXPLAINED

Here is the basic calculation to compute your current front end debt ratio-remember this must exceed 31%!

ADD TOGETHER YOUR CURRENT MORTGAGE PAYMENT, MONTHLY AMOUNT FOR PROPERTY TAXES, HOMEOWNERS INSURANCE, AND ANY HOA DUES

DIVIDE THAT TOTAL BY YOUR TOTAL HOUSEHOLD GROSS INCOME

THE RESULT WILL BE YOUR HOUSING DEBT RATIO PERCENTAGE FIGURE

Now do the same calculation but total ALL of your monthly expenses together and divide by your total gross monthly income to get your back end ratio percentage.

If all of this sounds confusing, don’t worry, most homeowners are stumped by this part of the Wells Fargo loan modification process.  You can get help to figure this all out

Exact Requirements

by using the loan modification calculator, a system designed specifically to compute and display your own specific debt ratio figures, income requirements, and new target payment.  When you input your own budget figures into the loan mod calculator, you will see immediately if you are passing or failing and where to adjust your figures so you can complete the Wells Fargo financial worksheet correctly.  It is critical to make certain that the information you provide to the bank will prove that you fit right into the program requirements if you hope to get approved for the help you need and deserve.

Get the real answers you need to figure your debt ratio-use the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator.  This powerful tool will automatically compute and display your own specific requirements for income, expenses and assets and show you instantly what your debt ratio is and what your new target payment could be.  Visit

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MyLoanModificationCenter.com today for more information.

Confused about the HAMP 2011 formula for debt ratio on your loan modification application?  This is one of the most critical aspects of applying and qualify for a loan workout-however most homeowners do not understand the formula that the bank uses.  Here is a brief explanation of what your lender will be looking for on your application paperwork.

HAMP FORMULA 2011 DEBT RATIO EXPLANATION

1. The first approval requirement is that your CURRENT debt ratio be higher than 31%-this means that your total monthly housing expense, your mortgage payment, property taxes, insurance and HOA dues, all together exceed 31% of your gross monthly household income.  The reason for this guidelines is that the new modified target payment will equal that percentage, so if your current payment is already lower than that figure, the loan mod won’t help you.  There is no published maximum percentage for your current debt ratio.

2. There is also a back end debt ratio, this is the total of ALL of your monthly expenses (not just your mortgage) divided by your household gross monthly income.  This shows the bank that you simply cannot make ends meet each month and are in a financial hardship situation that qualifies you for help.  There is no maximum percentage under the HAMP 2011 formula, but you must have enough monthly income to be able to afford the new mortgage payment and have some disposable cash left over each month .

3. Your debt ratio after the loan mod needs to equal 31% for your mortgage payment, property taxes, insurance and any HOA dues.  If the bank cannot use the Waterfall Method to reach this percentage, then you will be turned down.  This usually happens if you do not have enough monthly gross income on your application.

How can you be certain that your current debt ratio is acceptable and that your income passes the Waterfall Method of Modification?  You can use a system designed

Exact Requirements

specifically to help borrowers figure all this out-the loan modification calculator will instantly compute and display your own specific debt ratio, cash flow, and new target payment for you.  You will also see of you need to adjust your budget to pass the requirements.  Be sure to use the loan mod calculator before you submit your paperwork for review so you don’t make any mistakes.

Calculator Incl-Download immediately!

Find out if your debt ratio passes the HAMP 2011 requirements-use the #1 selling system for homeowners-The Complete Loan Modification Guide kit and loan mod calculator.  This powerful program will instantly show your own specific income, expense and asset requirements so that you can prepare your application correctly.  Visit MyLoanModificationCenter.com today for more information and get started now.

How Much Income?

One of the important parts of the Bank of America RMA form is making sure that you pass the debt ratio guideline for loan modification approval.   This important approval criteria uses your monthly gross income as well as other information that you provide on the RMA form-so make sure you know how to complete it correctly.

RMA FORM-BANK OF AMERICA LOAN MODIFICATION DEBT RATIO REQUIREMENTS FOR APPROVAL

1. The information you provide on page two of the RMA will be used to determine if you pass the debt ratio requirement-the is the financial worksheet part of the application.  Make certain that the information you provide is acceptable.
2. Your gross household monthly income is the most critical part of the approval formula-you cannot show too much or too little if you wan to pass.  Your current monthly mortgage expenses-house payment, property taxes, homeowners insurance and any HOA dues totaled together-need to be higher than 31% of your gross monthly income.  If they are lower, then you are not a good candidate.
3. You can verify your own monthly income will pass the debt ratio
   

   Exact Requirements

   guideline by running your own budget figures through the loan modification calculator-this program will instantly compute and display your current debt ratio as well as show you how much monthly income you need to qualify.

4. Once you know how much monthly income you need to pass the debt ratio requirement, you also need to verify your monthly expenses are acceptable and that your assets pass the guidelines.  The loan mod calculator will instantly compute and display PASS or FAIL for all of these triggers, and show you where to fine tune your budget to make certain you pass.

The Bank of America RMA form is the key to getting approved for a loan modification.  Show the bank your perfect monthly budget figures and you will pass all of the guidelines-that is the only way to get offered the lower mortgage payment you need.  This is about math-not how deserving you are-so make sure you double check all of your budget figures with the loan mod calculator before you submit them for review.

Calculator Incl-Download immediately!

Get the real answers you need to complete your RMA form correctly-use the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and loan mod calculator.  This proven system will compute and display your exact budget requirements for you to follow-avoid mistakes, get it right the first time.  Visit MyLoanModificationCenter.com today.

2011 HAMP Guidelines

There is a lot of confusion out there about the debt ratio guideline for HAMP loan modification.  This is one of the major qualifying triggers that you must pass if you hope to get approved, so it is important to understand how the 31% debt ratio works for qualifying purposes.

The federal Treasury Department set up standard guidelines that all banks use when reviewing homeowners for HAMP loan modification eligibility.  One of those guidelines is that you must be facing a financial hardship situation and that your current mortgage payment is unaffordable.  The way that the lenders decide that your payment is too high now is to use this debt ratio formula.

HAMP DEBT RATIO FORMULA-31% CALCULATION EXPLANATION

Debt Ratio Calculation

1. This approval trigger refers to your Current Mortgage Payment-and requires that your total monthly mortgage expenses (payment, taxes, insurance and any HOA dues) be higher than 31% of the household gross monthly income.  If your current mortgage expenses are already less than 31%, then you may not be a good candidate for loan modification.
   
2. As long as your current mortgage expenses exceed 31% of your gross monthly income, then you pass the first trigger for HAMP debt ratio.
3. Now, your mortgage must be able to be modified using the Waterfall Method to arrive at a new monthly mortgage expense that equals 31% of your gross monthly income.  This new payment is called the Target Payment, and that is the figure that HAMP feels is affordable for homeowners.
4. The Waterfall Method uses your gross monthly income, your current mortgage balance and current property taxes, homeowners insurance and any HOA dues to determine what the new terms of your mortgage could be.  The interest rate can be reduced to 2%, the term extended to 40 years and finally the loan balance may be reduced to achieve the new 31% target payment.
5. If your monthly income is too low, then you will not pass the Waterfall Method and you will be turned down because your loan could not be modified to reach the target payment. If your income is too high, you will fail the initial 31% guideline.

Exact Requirements

It is critical to know ahead of time if your monthly income will pass the 31% debt ratio trigger and if your income is enough to pass the Waterfall Method to reach the new lower target payment.  You can find out your specific income requirements by using a system designed specifically for homeowners, the loan modification calculator.  This program will automatically compute and display PASS or FAIL for the debt ratio and Waterfall Method, and show you how much income you need to qualify.

Don’t be confused-get the real answers you need-use the #1 selling system for homeowners-The Complete Loan Modification Guide kit and Loan Mod Calculator.  Designed specifically to help borrowers apply for HAMP, the

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program will instantly give you specific income, expenses and asset requirements and help you avoid mistakes.  Visit MyLoanModificationCenter.com today for more information.

Tip of The Day

Do you understand the loan modification debt ratio requirement?  This can be a confusing calculation for homeowners trying to qualify for a loan workout with their lender.  The federal program has standard criteria for acceptable debt to income ratio-and even the in house plans require that you pass this important approval guideline.  Here is some helpful information on how it works.

TIP OF THE DAY – DEBT TO INCOME RATIO REQUIREMENTS

1. What is DTI?  This is a percentage calculation that represents how much of your household gross monthly income is being spent on your mortgage expenses.
2. Formula:  Add together your mortgage payment, property taxes, homeowners insurance and any HOA dues.  Now take that total monthly expense and divide it by your total household gross monthly income-that will be your front end Debt Ratio.
3. The federal loan modification program requires that your current ratio exceed 31% – the reason for this is because the new target payment will be lowered to equal that 31% figure.  If you already have a mortgage
   

   Debt Ratio Calculation

   payment that low, then a loan mod will not help you.

4. The back end debt ratio is the percentage of your gross income that goes towards all of your monthly expenses-groceries, utilities, credit cards, etc.  There is no maximum or minimum for this figure, but if yours is over 55% then you may be required to attend a credit counseling course before your loan mod is made permanent.
5. You may need to adjust your monthly budget in order to pass the Debt to income ratio requirement-use the loan modification calculator to help you figure out exactly how to list your income, expenses and assets so you are sure to pass the approval guidelines with your lender.

Financial Worksheet Calculated!

The loan mod calculator will instantly compute and display all 7 approval triggers-including your debt ratio, asset ratio, cash flow, waterfall method, and new mortgage terms-including if you may be eligible for any principal reduction.  This powerful tool will help you avoid mistakes and give you the very best shot at loan mod approval.

This Tip of the Day is brought to you by the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Quick APP calculator.  Get the real answers and real help you need-visit

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MyLoanModificationCenter.com today.

Debt Ratio Calculation

Citimortgage has specific requirements for your monthly income and debt ratio that you must pass if you hope to get approved for a loan modification.  These are part of a mathematical formula used in the underwriting on every loan mod application-and only those homeowners who can pass these requirements will be offered help.  Here is some information on how this formula works so that you can have a better shot at approval.

CITIMORTGAGE LOAN MODIFICATION-DEBT RATIO AND INCOME REQUIREMENTS

Debt Ratio: This calculation represents the percentage of your GROSS monthly household income spent on your total housing costs-mortgage payment, property taxes, insurance and any HOA dues.  In order to prove you are in a financial hardship, your current mortgage must exceed 31% debt ratio, meaning you spend more than that each month just on your housing.  There is no maximum ratio, however your monthly income must be sufficient to pass the Waterfall Method of Modification to achieve the new target modified payment.

Monthly Gross Income Requirement: Each homeowner must present a detailed, broken down accounting of their household monthly income, expenses and assets so the Citimortgage can review it.  This is trickier than it sounds, because if you show too much or too little income or expenses you

Specific Income Displayed

could fail the approval formula.  To be sure that your own budget will pass, run your figures through the loan modification calculator.  This helpful tool will automatically calculator and display your own specific income, expense and assets required to qualify.

The specific income and debt ratio requirements for a Citimortgage loan modification vary for each homeowner-however since the bank uses the same formula on everyone, you can use the loan mod calculator to show you the specific figures required for your situation.  When you know ahead of time just where to fine tune your budget, you will be able to submit your application correctly and avoid costly mistakes.

Get your own specific income, asset and expense requirements-use the #1

Proven Results-Download immediately!

selling system-The Complete Loan Modification Guide kit.  This proven resource includes the powerful loan modification calculator that automatically computes and displays your own budget figures-the bank won’t tell you this information, and why guess when you can know ahead of time just what the bank needs to see in order to have the best shot at approval?  Visit MyLoanModificationCenter.com to get started today.

Getting approved for an Indymac loan modification can be tricky-your application forms must be completed correctly and your financial worksheet must prove to the bank that you fit the approval guidelines.  One of the first things Indymac looks at is your debt ratio-here are some tips on how this calculation works and how to make sure you pass this guideline for approval.

Debt Ratio Calculation

INDYMAC LOAN MODIFICATION-DEBT TO INCOME RATIO TIPS

1. Debt ratio is a calculation used by the bank to determine how much of your household gross monthly income is being used on your mortgage expense.  This is a percentage that shows Indymac that your current mortgage is not affordable, and that you are a good loan mod candidate.  Your must pass this criteria in order to be approved-so it is very important to know how to figure your own ratio.
2. Here is the basic calculation- add up all of your mortgage payment, monthly property taxes, monthly homeowners insurance and any HOA dues.  Now divide that total amount by your total gross monthly income-the result is your debt ratio.  EXAMPLE:  $3000 total mortgage expense divided by $5200 total Gross Monthly income = 57% debt ratio.
3. Your current debt ratio must exceed 31% to be eligible for the government loan mod program-if your own ratio is lower than this figure then your mortgage is not the cause of your hardship.  You may still be offered some type of loan workout, but not under the federal program.
4. There are actually 2 debt ratio calculations that Indymac looks at-the first and most important is the one explained above-this is called the front end ratio.  The second calculation is called the back-end ratio, and this figure represents all of your monthly obligations, including the mortgage payment.  Many borrowers who are struggling will have a very high back end debt ratio-sometimes over 100%, because they have more bills than money at the end of the month.  If your back end debt ratio exceeds 55%, you may be required to attend a consumer credit counseling class before your loan modification will be made
   

   Budget Requirements Computed

   permanent.

5. TIP! Work on your monthly budget ahead of time-do not submit your financial worksheet until you have run your figures through the loan modification calculator.  This easy to use program will instantly compute and display passing or failing for the debt ratio, loan to value, asset ratio, expenses, Waterfall Method and the other approval triggers.  Then use this information to fine tune your figures before you submit them for review.

TIP! You must be able to pass all of the Indymac loan modification approval guidelines in order to qualify for help.  Debt to income ratio is just one of the triggers-most homeowners really have no idea what they need to show the bank to qualify and so most are turned down.  Don’t let this happen to you-the more you know the better your chances of approval!

Get real answers and real help-you don’t have to guess at how to prepare your Indymac loan modification application.  Use the #1 selling system for homeowners, The Complete Loan Modification Guide kit and Loan Mod

Proven Results-Download immediately!

Quick APP Calculator.  This powerful tool has helped thousands of homeowners by providing specific income, expense and asset requirements for the approval formula-the loan mod calculator instantly and automatically computes and displays your own sample budget that you can follow.  Visit MyLoanModificationCenter.com today to get the answers you need.

Debt Ratio Calculation

Confused about the debt ratio requirement for Wells Fargo loan modification?  Don’t feel bad-most borrowers do not really understand this approval guideline and this causes many denials.  It is really just a mathematical formula-but since it is one of the very first triggers you must pass to qualify, it is important to understand how it works.

WELLS FARGO DEBT TO INCOME RATIO GUIDELINE

Tip #2: Total all of the gross income, then total of your mortgage expenses-payment, property taxes, homeowners insurance and any HOA dues.  Now divide the total mortgage expense by the household gross-that is your front end debt ratio.  There is a tool you can use to help you figure this out-the loan modification calculator will automatically compute and display your debt ratio, and also show where you may need to make

Budget Requirements Computed

adjustments to meet the guidelines-helps you to avoid mistakes!

Avoid mistakes-fine tune your budget figures using the #1 selling, proven system for homeowners, The Complete Loan Modification Guide kit and

Proven Results-Download immediately!

Loan Mod Quick APP calculator.  Get the real answers you need-the loan mod calculator instantly computes and displays your debt ratio, and also shows the specific budget requirements for your application.  Get started now-visit MyLoanModificationCenter.com today.

Debt Ratio Calculation

Homeowners need to pass the HAMP debt ratio requirement in order to qualify for a Wells Fargo loan modification.  This calculation sometimes confuses borrowers, and since it is so important to understand, using a HAMP loan modification calculator can be a big help to make certain you have done it right.

What is debt ratio and how does it work with a Wells Fargo HAMP loan modification?  The simple explanation is that the bank needs to verify how much of your household gross monthly income is being spent each month on your housing costs.  Your financial worksheet must prove that the current mortgage is unaffordable, but it must also prove that you fit into the Waterfall Method of Modification and that your mortgage can be modified to an affordable monthly payment.

WELLS FARGO LOAN MODIFICATION DEBT TO INCOME CALCULATOR

Here is the simple and sure way to verify that your financial worksheet will

Debt Ratio Calcuated for You

pass the approval guidelines:

1. Use the Worksheet to itemize all of your monthly income, monthly expenses and assets.
2. Input that information into the Loan Mod Calculator in the corresponding fields
3. The calculator will instantly compute and display your debt ratio-showing you if you are passing or failing and where to make the required adjustments before submitting
4. The loan modification calculator also computes your asset ratio, loan to value, cash flow, Waterfall Modification, potential new loan terms including rate, term and principal reduction.
5. Use this critical information to fine tune your own budget until you are passing all the categories on the Calculator, then use this adjusted financial information on your final application form to send into Wells Fargo for review.

Perfect RMA Application!

Debt to Income ratio is just one of 7 approval triggers you must pass in order to qualify for a Wells Fargo loan modification.  Unless you know ahead of time just where and how to adjust your own financial worksheet, it is extremely difficult to know just what the bank needs to see from you to approve your application.  The HAMP calculator takes the guess work away, and provides the important information you need to know ahead of time.

Get the real help and real answers you need with the #1 selling resource for homeowners-The Complete Loan Modification Guide kit and Loan Mod Quick APP calculator.  This proven system provides you with the information you need-the loan mod calculator instantly computes and

Proven Results-Download immediately!

displays your own specific income, expenses and asset requirements.  Get started now-visit MyLoanModificationCenter.com.