debt to income ratio for a mortgage 2009
Student loan debt and qualifying for a mortgage…?
My husband and I would really like to purchase a home this year to take advantage of the 2009 first time home buyer tax credit. We have a higher debt-to-income ratio because of student loan debt my husband acquired getting his MBA. In my opinion having student loan debt is more “responsible” debt than having credit card debt, but I don’t know if credit agencies/mortgage brokers look at it this way.
Does anyone have any experience where they were able to qualify for some of the first-time home buyer loans with this kinda of situation? Or if there’s any mortgage “products” to look for. Just looking for some hope… we’re going to talk to a mortgage broker about our situation, but I thought I’d ask!
We have a smaller ($5k for $100k home in our area is what we’d like to shoot for) down payment saved and there are even down payment/closing cost assistance options through our state if we want to try and qualify for those.
I guess it is more responsible than using debt to buy a big screen tv but in eyes of lender if your debt / income ratio is too high then they will see this as an increased risk you will default.
They know you are less likely to be able to handle an obstacle such as a job loss for a few months.
You never mentioned what your ratio was. All you can do is approach a lender and ask the question. That $8,000 will really help. If you could promise lender the $8,000 will go to them I wonder if that can help?
