Debt to Income definition

Debt to Income means the ratio of the Monthly Debt Obligations for a Consumer on a Loan to that Consumer’s gross monthly income. If a Loan has a borrower and a co-borrower (including a guarantor), Debt to Income shall mean the ratio of the total Monthly Debt Obligations for both Consumers on the Loan to the total of those Consumers’ gross monthly income.
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Debt to Income. Ratio (DTI) as a means of determining the borrower's credit grade and to evaluate their ability to repay. Disposable New Century will also evaluate the borrower's "Disposable Income Income". This is determined by subtracting the borrower's "Total Monthly Payments" from their "Gross Income". The following guide is to be used as a tool for underwriters to consider whether a borrower has sufficient disposable income to cover their other living expenses and to provide minimal reserves. Family Size Disposable Income ----------------------------------------------------------------- 1 400 2 600 3 800 4 1,000 5 1,200 6 1,400 7 1,600 Although this table is used as a guide, New Century may use discretion when reviewing borrowers with disposable income below these levels. Continued . . . -------------------------------------------------------------------------------- Policy & Training Development Debt to Income (DTI) Ratios (continued) Maximum DTI Grade Maximum DTI By Grade ----------------------------------------------------------------- A+ 45% A- (45% for LTV's greater than 85%) 50% Mortgage Only Program (M.O.P.) 55% B 55% C 59% C- 59% HomeSaver 59% -------------------------------------------------------------------------------- Policy & Training Development UNDERWRITING / 1st LIENS Policies - Collateral Requirements --------------------------------------------------------------------------[LOGO] Page 1 of 11 (03/03/99) Latest Revised Items in Bold Blue Overview Importance of Due to the nature of Sub Prime lending, the condition and Collateral accurate value of our collateral is an essential part of making Condition the proper credit judgment. The following guidelines are provided and Valuation to assist all NCMC associates in determining the acceptability and the value of the collateral: . Acceptable Property Types ------------------------- . Mobile Manufactured Homes ------------------------- . Property/Collateral Requirements -------------------------------- . Appraisal/Collateral Valuation ------------------------------ . Insurance Requirements ---------------------- -------------------------------------------------------------------------------- Policy & Training Development UNDERWRITING / 1st LIENS Policies - Collateral Requirements --------------------------------------------------------------------------[LOGO] Page 2 of 11 (03/03/99) Latest Revised Items in Bold Blue
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Examples of Debt to Income in a sentence

  • With regard to loan attributes, particular attention is given to factors such as: - Proportion of obligors with high Loan to Value (LTV) ratios - Breakdown by occupation - Proportion of low-income earners - Proportion of obligors with high Debt to Income (DTI) ratios - Proportions of loan types - Proportions of property locations - Number of obligors.

  • Housing Debt to Income, Total Debt to Income and Mortgage Amount to Appraised Value.

  • Debt to Income Ratio - The total debt to income ratio for a household may not exceed 45%.

  • With regard to loan attributes, particular attention is given to factors such as the proportion of obligors with high Loan to Value (LTV) ratios, the breakdown by occupation and the proportion of low-income earners, the proportion of obligors with high Debt to Income (DTI) ratios, the proportions of loan types, the proportions of property locations, and the number of obligors.

  • With regard to loan attributes, particular attention is given to factors such as:- Proportion of obligors with high Loan to Value (LTV) ratios- Breakdown by occupation- Proportion of low-income earners- Proportion of obligors with high Debt to Income (DTI) ratios- Proportions of loan types- Proportions of property locations- Number of obligors.

  • Santander shall set a reasonable Debt to Income threshold to ensure that Santander is reasonably evaluating a Consumer’s ability to pay.

  • At least annually, Santander shall evaluate its Debt to Income calculation and threshold to ensure that it is reasonably accounting for Consumers’ ability to pay.

  • Starting in the second quarter of 2020, and at least quarterly thereafter, Santander shall test a statistically relevant sample of Loans to monitor the accuracy of the Debt to Income calculation and compliance with the threshold.

  • Santander shall not purchase a Loan if the Consumer’s Debt to Income exceeds the Debt to Income threshold.

  • In addition, Genworth uses a Debt to Income (DTI) calculation to consider the ongoing management of borrower affordability.

Related to Debt to Income

  • Consolidated Total Debt to Consolidated EBITDA Ratio means, as of any date of determination, the ratio of (a) Consolidated Total Debt as of the last day of the relevant Test Period to (b) Consolidated EBITDA for such Test Period.

  • Debt to Capital Ratio means the ratio (expressed as a percentage) of debt to total capital (the sum of debt and equity). This is a measure of financial leverage that the Company considers in capital management planning.

  • Senior Debt to EBITDA Ratio means, as of the last day of any Fiscal Quarter, the ratio of (i) Senior Debt as of such day to (ii) EBITDA for the Computation Period ending on such day.

  • Interest Coverage Ratio means, as of the end of each fiscal quarter, the ratio of (a) Consolidated EBITDA to (b) Consolidated Interest Expense, in each case for the then-most recently concluded period of four consecutive fiscal quarters.

  • Debt Ratio as at the last day of any fiscal quarter, the ratio of (a) Consolidated Total Debt minus Designated Cash Balances on such date to (b) Consolidated EBITDA.

  • Consolidated Interest Coverage Ratio means, as of any date of determination, the ratio of (a) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date to (b) Consolidated Interest Expense for the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date.

  • Leverage Ratio means, on any date, the ratio of Total Debt on such date to Consolidated EBITDA for the period of four consecutive fiscal quarters most recently ended on or prior to such date.

  • Class C Interest Coverage Ratio means, as of any Measurement Date, the ratio (expressed as a percentage) obtained by dividing the Interest Coverage Amount by the scheduled interest payments due on the Class A Notes, the Class B Notes and the Class C Notes. For the purposes of calculating the Class C Interest Coverage Ratio, the expected interest income on Collateral Debt Obligations, Eligible Investments and the Accounts (to the extent applicable) and the expected interest payable on the Class A Notes, the Class B Notes and the Class C Notes will be calculated using the then current interest rates applicable thereto as at the relevant Measurement Date.

  • First Lien Leverage Ratio means the ratio, as of any date, of (a) Consolidated First Lien Debt as of the last day of the Test Period then most recently ended to (b) Consolidated Adjusted EBITDA for the Test Period then most recently ended, in each case of the Borrower and its Restricted Subsidiaries on a consolidated basis.

  • Cash Flow Leverage Ratio means, as of any time the same is to be determined, the ratio of (a) Funded Debt as of the last day of the most recent four fiscal quarters of the Company then ended minus Excess Cash as of the last day of the same such period to (b) EBITDA for the same most recent four fiscal quarters then ended.