Flexible debt ratios refer to a lending approach in which lenders are willing to accept higher levels of debt relative to income than traditional lenders. This means they are more lenient in their calculations of how much of your income can go towards debt payments, including your mortgage.

Key Aspects of Flexible Debt Ratios:

• Higher Debt Allowance: Borrowers with non-traditional or variable income can qualify with higher debt-to-income limits.

• Ideal for Self-Employed Borrowers: Flexible debt ratios make it easier for freelancers or contractors to access mortgage financing.

• Income Consideration: Lenders may weigh additional income sources, such as rental or investment income, in the approval process.

Flexible debt ratios provide more accessible mortgage options for individuals with complex financial profiles.

To discover lenders with flexible debt ratio options, read our Lender Reviews.

Learn More About Any of These Terms: