DTI appears to be high, but really isn't. Can I get approved?

[rross]

The mortgage is in my name only, even though my fiancee pays half every month.  But since it's only in my name, my DTI appears to be 45% (and that's without a car payment!)   In reality, my DTI is more like 30% because I don't pay the full mortgage.  Credit score is around 680.  I'm just wondering if anyone will even approve me?  My score is fine, but I'm sure the high DTI will cause a red flag. 

It sure would be nice if I could count my fiancee's half of the mortgage as income, but if they ask for income verification obviously they'll see that the numbers don't match.  What to do, what to do....

[StartingOver10]

Actually your DTI is high at 45% without a car payment. Not that it looks high, it is nearly half of your gross income which doesn't leave much for anything else. And according to your post, you are 100% responsible for the payment.

The fact that your fiancee contributes to your household income is not a factor because if s/he were to leave or become unemployed, then you still would be on the hook for 100% of your mortgage payment plus whatever auto payment they issued. The auto payment then becomes at risk so the CU is looking at the risk associated with making a loan to anyone that has used up nearly half their gross income already.

The CU is being prudent. Personally, I think the CU is looking out for your best interest. They don't want to bury you in a payment you can't make over the entire term of the loan.

You can do the following to change the result:

1) Increase your income and/or reduce your current expenses

2) Add another borrower with additional income to the loan

3) Look for a smaller loan or cheaper vehicle

4) Buy a cheap vehicle for cash while you work on increasing your income.

Maybe your fiancee ought to consider getting the vehicle loan in her name if you can't do any of the above right now. Good luck.

[rross]

I understand that on paper, yes... it looks like I have no business taking on a car payment with 45% DTI. But in reality it's more like 30% DTI since my fiancée and I split the mortgage. 30% isn't that bad and I'm sure I'd get approved with that if that's how it appeared. But unfortunately for me, it does show 45% because they can't take into consideration that she pays half of the house payment. It just stinks because I can most definitely afford a car payment... again, 30% DTI is very manageable. But its going to be difficult for a lender to look past the facts, I'm sure.

[Walt_K]

Why can't you and your fiancée apply for the car loan together?  That way her income is considered.  Even if she has credit issues, there are some auto lenders that will take the best score between the two as opposed to mortgage lenders which always take the lowest mid-score (at least that is what I have read on here).