RFlady

Hi, Brian! Thanks for your response! The 51% ratio is for all of my debt, including the dreadful student loan payment that will descend upon me in about a year. The loan officer I spoke to said that the FHA loan wouldn't work for me, because the limit for that program is around 46% for debt-to-income. So she must have been incorrect? But to answer your question, she was looking at the possibility of a conventional loan for me. It looks like, regardless, I'll need to save up a bigger fund for the down payment and closing fees. (My cap for a place is about $110K). I also want to talk to a different banker. Thank you again for your help! :-)

Hello, I met with a loan officer a couple of weeks ago to see if I could get pre-approved for a home loan. My income is modest, but my credit scores are very good. I have about $3000 saved for a down payment / closing costs. The loan officer said that, because my debt-to-income ratio is at 51%, they would require a down payment of at least $10,000. (I don't have this, and it would take years to save it up.) She said flat-out that this ratio makes me high risk, despite my good credit and good employment history. That stung... Since I'm spending so much on rent, comparable to a mortgage payment, I thought it would make sense to spend it on a house that I own. So, my question is: Is it very unlikely that I would get pre-approved for a home loan with the debt-to-income ratio that I have, and not having a down payment of ten percent of the loan amount? I only spoke with one person at one bank, but I am interested in hearing the opinions of those who have been through this. Thanks! I'd love to stop pouring thousands into a rental at some point!