The Wells Fargo loan modification debt ratio guidelines have changed, and now homeowners may find it a bit easier to qualify for a loan workout.  This is one category that often confused borrowers-most of us have never even heard of debt ratio, let alone understand how to figure it out and pass this important approval criteria.

The Wells Fargo loan modification program requires that a struggling homeowner provided details about their monthly income, expenses and assets.  This financial information is then used by the bank to determine if you are eligible for a loan mod.  The guidelines are very specific, and if you don’t provide the right financial information you will be denied help.

The NEW Wells Fargo debt ratio guidelines include a wider range Debt Ratio?of acceptabilility-meaning that instead have to hit one specific figure, you can fit into a range of debt ratio percentage.  The idea is to give more borrowers a better shot at getting approved with this relaxed new guideline.

The previous debt ratio requirement was set at 31%-this meant that your current mortgage expense (house payment, taxes, insurance and any HOA dues) had to be GREATER than 31% of your gross household income.  It also meant that your NEW modified mortgage payment would equal 31%-aiming for an affordable monthly mortgage expense.

The NEW Wells Fargo loan modification debt ratio guideline is between 22% and 42%-so this means that you do NOT have to hit that 31% number exactly-if you fit into the new range you may be eligible for a loan mod.   So this means that your new target

Your Budget

payment could equal anywhere from 22-42% of your gross monthly income-resulting in either a higher or lower modified payment than before.

IF this still sounds confusing to you, it is possible to find out exactly what your current debt ratio is and also find out what your new target payment debt ratio will be-use the Loan Mod Calculator.  This program is designed specifically for homeowners and will automatically compute and display your own debt ratio figures for you.  Use this information to fine tune your budget figures before you submit to Wells Fargo so you KNOW that you pass the new debt ratio guideline.

Get the real answers you need-order the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator.  Your own specific budget figures will be computed and you will see a PASS or FAIL for the 7 approval

Calculator Incl-Download immediately!

triggers-including debt ratio.  Fine tune your figures until you PASS!  Visit today.

Add A Comment