PageContent1 How is my ability to pay determined? Knowing how much you’re able to pay has a lot to do with your debt-to-income (DTI) ratio. This is the percentage of gross income that goes towards paying debts. For example, if your gross family income per month is $5,200 and the monthly debt payments amount to $1,200, the DTI would be calculated by dividing your monthly debt by your monthly gross income: $1,200 / $5,200 = 0.23 This means your DTI is 23%. As a general rule, we recommend the percentage to be 43% or less. Nonetheless, depending on your profile, you may qualify for other products that allow for a DTI over 43%. What debts are taken into account to evaluate a loan?To evaluate a mortgage loan, the debt included in your credit report is taken into account, including revolving accounts, personal loans, auto loans, student loans (if applicable), as well as debt outside the credit report, such as rent and maintenance payments, taxes (for other properties), and child support. Do I qualify for a mortgage loan if I’ve only been 6 months in my job? You may qualify to purchase or refinance your home if you meet certain requirements, are permanent in your job, can present evidence of the last 24 months (as of the day the application is submitted) that you were studying/working in the same field, and if the income is not from self-employment. Can I purchase a home with my partner if we’re not married? Yes, you may purchase your home with your partner or relative. Keep in mind that, upon loan closing, both debtors will own the property and be responsible for the mortgage loan. Can I purchase a home if I don’t have any credit history? Yes, even if you don’t have any credit, there are many loan options that consider alternative credit, meaning monthly payments and expenses, such as rent, water, electricity, furniture, and utilities. You must furnish a payment history certification for the last 12 months. What is a loan-to-value ratio?Your loan-to-value (LTV) ratio describes how much money you owe on the house compared to the appraised value of the property. You may find your LTV by dividing your mortgage amount by the house’s appraised value or selling price, whichever is less. The LTV varies according to investor, transaction type, whether it is a sale or refinancing, and the use to be given to the property. For example, you are buying a home whose selling price or appraised value is $100,000. If your down payment is 8% ($8,000), your bank will have to pay the remaining $92,000. Therefore, your LTV is 92%. The main advantage of a higher down payment is that it helps you obtain a lower interest rate and avoid paying a private mortgage insurance, and your monthly payments will be lower. Can I receive donations from a family member to help with my down payment and closing costs? Yes, you may receive donations to cover part of the down payment and closing costs. If you have a relative that wants to help you purchase your home, they may contribute to your closing costs or initial down payment. Documentation will be required to validate the source of the donations. Please keep in mind that these requirements may vary by loan type. All loans are subject to credit approval. Certain terms and conditions apply.