I Have a High Debt-to-Income Ratio — What Are My Options?
Trying to stay afloat with debt looming over your head feels like trying to escape from a sinkhole. To address your financial struggles, you may have attempted to obtain a personal loan, only to be shot down by banks because you have a high debt-to-income (DTI) ratio. Don’t they understand why you are seeking a loan in the first place? You’re trying to fix this.
Unlike banks, SKYDAN Equity Partners LLC doesn’t care about your DTI, and the term “credit score” means nothing to us. We only want to know if you have equity in your home — if you do, we can help ease your financial burden. Continue reading for more details about DTI, and to find out how SKYDAN Equity Partners can help get your DTI down to an appropriate level.
How to Calculate Your DTI
Simply put, your DTI is measured by dividing your monthly debt payments by your monthly gross income. For instance, if you make $3,000 a month in income before deductions, but you also owe $1,500 each month in debt, your DTI is 50 percent. Between student debt, auto loan payments, mortgage payments, and other debt bills, even folks with a high income can have a tough time keeping a low DTI.
What’s a Good DTI?
The lower your DTI, the better. Ideally, you’ll want your DTI to stay below 36 percent. That’s not to say that you are in terrible shape if you are above that number, but lenders prefer individuals with a DTI that’s 35 percent or lower. Anything up to 49 percent isn’t too bad, but banks will want additional proof of your ability to afford any loans you apply for.
My DTI Is High & I Need Capital ASAP — What Can I Do?
If you have a high DTI, but you need large amounts of capital ASAP, you have several options. There are a few loan options that are designed to help people who get turned away from banks due to a high DTI or bad credit score. You can try a debt consolidation loan, peer-to-peer loans, a “bad credit loan,” a secured personal loan, or even a cosigned loan. While many of these options make loans more obtainable for people with bad credit or a high DTI, those factors are still taken into consideration, and if you are in a particularly bad financial situation, lenders will see you as a risk.
At SKYDAN Equity Partners LLC, we don’t care about your DTI, and we don’t need to know your credit score. Our only requirement is that you have equity in your home. Our program allows you to tap into your home equity so you get yourself out of a financial rut, and you can live in your home payment-free for up to two years. If you’re ready to see what’s possible with our equity program, contact us to learn more!