One of the most important factors in qualifying for a 2nd mortgage is the debt to income ratio. Mortgage lenders do not want to risk extending money to borrowers that have too much debt. It is no secret that debt to income ratio is one of the most critical components that underwriters consider before approving an equity loan or HELOC. Second mortgage debt to income ratio requirements are typically lower with banks and higher with lending companies that actually specialize in home equity programs.
| Credit Score | Maximum Debt to Income Ratio |
720+ |
50% |
700 to 719 |
45% |
680 to 699 |
45% |
660 to 679 |
40% |
Should I refinance a 2nd mortgage?