I am looking for direction as to guidance on acceptable debt coverage ratios for 2-4 family units. Current policy states we will accept a dscr for these at 1.00, but something tells me that I have seen a requirement for 1.10 someplace else, and cannot locate that guidance right now.

Any thoughts or leads?

Jay--

I did a quick search on Fannie Mae and Freddie Mac. I saw them anywhere between 1.05 up to 1.25, depending on whether the loan being sold was fixed, variable, rehabilitation, acquisition, etc. You can probably refine the search for guidance pertinent to your institution.

www.efanniemae.com

www.freddiemac.com

www.allregs.com

MarkB