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

  • Debt to Equity Ratio means the ratio of the value of liabil- ities to equity, calculated according to s. 126.44 (8) (c) 2.

  • Debt to Cash Flow Ratio means, with respect to any Person as of any date of determination, the ratio of (a) the Consolidated Indebtedness of such Person as of such date, less cash and Cash Equivalents, to (b) the Consolidated Cash Flow of such Person for the four most recent full fiscal quarters ending immediately prior to such date for which internal financial statements are available. For purposes of making the computation referred to above:

  • Debt to EBITDA Ratio means, as of any date, the ratio of Consolidated Indebtedness (as of the date of determination) to EBITDA (for the Company’s then most recently completed four fiscal quarters).

  • Debt to Capitalization Ratio means, with respect to the Borrower, as of any date of determination, the ratio of (a) Total Debt for the Borrower as of such date to (b) Total Capitalization for the Borrower as of such date.

  • Debt Coverage Ratio means the ratio of Consolidated Indebtedness to Consolidated EBITDA.

  • 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.

  • Total Debt to EBITDA Ratio means, as of the last day of any Fiscal Quarter, the ratio of (a) Total Debt as of that day minus the lesser of (i) Unrestricted Cash and (ii) $5,000,000 to (b) EBITDA for the Computation Period ending on that day.

  • Funded Debt to EBITDA Ratio means on any date the ratio of (a) Total Indebtedness to (b) EBITDA for the period of four consecutive Fiscal Quarters ended on such date (or, if such date is not the last day of a Fiscal Quarter, ended on the last day of the Fiscal Quarter most recently ended prior to such date).

  • 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.

  • Cash Interest Coverage Ratio With respect to any Loan for any Relevant Test Period, either (a) the meaning of “Cash Interest Coverage Ratio” or comparable definition set forth in the Underlying Instruments for such Loan, or (b) in the case of any Loan with respect to which the related Underlying Instruments do not include a definition of “Cash Interest Coverage Ratio” or comparable definition, the ratio of (i) EBITDA to (ii) Cash Interest Expense of such Obligor with respect to the applicable Relevant Test Period, as calculated by the Borrower and Collateral Manager in good faith.

  • Net Debt to EBITDA Ratio means the ratio of Net Debt to EBITDA for the then most recently concluded fiscal year, subject to adjustments for Asset Dispositions and investments made during the period.

  • 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 most recently completed four fiscal quarters to (b) Consolidated Interest Charges for the most recently completed four fiscal quarters.

  • Current Loan-to-Value Ratio The Principal Balance of a Mortgage Loan as of the applicable date of substitution divided by the Appraised Value.

  • Leverage Ratio means, on any date, the ratio of (a) Consolidated Total Indebtedness as of such date to (b) Consolidated EBITDA for the period of four consecutive fiscal quarters of the Company most recently ended on or prior to such date.

  • Cash Flow Coverage Ratio means, for any period, the ratio of (i) Adjusted Parent Operating Cash Flow for such period to (ii) Corporate Charges for such period.

  • Consolidated First Lien Leverage Ratio means, as of any date of determination, the ratio of (a) Consolidated Funded Indebtedness as of such date that is secured on a first lien basis by assets or properties of Holdings or any Subsidiaries to (b) Consolidated EBITDA of Holdings and its Subsidiaries on a consolidated basis for the most recently completed Measurement Period.

  • EBITDA Coverage Ratio defined as EBITDA divided by the aggregate of total interest expense plus the prior period current maturity of long-term debt and the prior period current maturity of subordinated debt.

  • Combined Loan-to-Value Ratio or CLTV As of any date and as to any Second Lien Mortgage Loan, the ratio, expressed as a percentage, of the (a) sum of (i) the outstanding principal balance of the Second Lien Mortgage Loan and (ii) the outstanding principal balance as of such date of any mortgage loan or mortgage loans that are senior or equal in priority to the Second Lien Mortgage Loan and which are secured by the same Mortgaged Property to (b) the Appraised Value as determined pursuant to the Underwriting Guidelines of the related Mortgaged Property as of the origination of the Second Lien Mortgage Loan.

  • Loan-to-Value Ratio or LTV With respect to any Mortgage Loan, the ratio of the Stated Principal Balance of the Mortgage Loan as of the related Cut-off Date (unless otherwise indicated) to the lesser of (a) the Appraised Value of the Mortgaged Property and (b) if the Mortgage Loan was made to finance the acquisition of the related Mortgaged Property, the purchase price of the Mortgaged Property, expressed as a percentage.

  • 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 the last day of any calendar quarter the ratio of the Total Funded Debt as of such day to Adjusted EBITDA for the four calendar quarters then ended.

  • Consolidated Senior Secured Net Leverage Ratio means, for any Measurement Period, the ratio of (a) Consolidated Senior Secured Net Debt for Borrowed Money to (b) Consolidated EBITDA, in each case for such period.