Chances of mortgage approval with high student loan debt?

[Anonymous]

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@Lemmus wrote:

...DTIR ...generally, 36 will get you through any program ...you can get a loan up to 50 iirc, but the noose gets tighter and tighter ...at 36 with 28k income and 500mt debt (union dues dont count), you max mortgage PITI works out to about 340 mt with avg TI at 4% ...and thats giving you no hoa which you will probably have with a condo ...all told my numbers are a bit more conservative than dpeezy's at 61K ...but she would be using different dtir, debt numbers, and loan rate ...and she's the pro here ...ymmv

...in most cases like yours I'd highly recommend state assistance programs but that 15k you have already may disqualify you

...the other program that may help would be the USDA Direct ...their terms are a lot more flexible and they will even sub your payments if necessary ...the only thing is that they are rural loans only ...but you might be surprised at what their definition of rural is in your area

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Just for reference, I am a man, not a woman .

[Anonymous]

Thank you both, you've been very helpful! This place is such a great resource!

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[Shann0n_marie]

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@Lemmus wrote:

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@Anonymous wrote:

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@Lemmus wrote:

...dpeezy ...when is that 1% effective? ...I keep finding the 2% referenced ...old net posts I know but even the new HUD SF says 2% and thats a May doc effective in Sep ...1% makes a huge difference to those wth SLs.

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You are thinking of the new FHA change my good sir.

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...yes, I am ...does the FM change not apply to FHA mortgages ...color me confused by the alphabet soup

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Fannie Mae guideline changes do not apply to FHA loans.  They are an entirely separate set of guidelines based on the 4155 and Mortgagee Letters which announce revisions to the existing guidelines.

[Lemmus]

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@Anonymous wrote:

Just for reference, I am a man, not a woman .

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...so what you're really trying to say is ...three pairs of shoes are more than enough? 

[splitraindrop]

My husband and I were able to qualify for a mortgage with only about 8% down despite my massive student loans. I have about $75,000 between undergrad and grad school. I'm not yet in repayment (still finishing school) but my lender said they would use 1% or what my actual payments were. I didn't want to deal with trying to get a payment estimate so I allowed them to use the 1%. This did put our DTI pretty high (38%). Our gross combined income is 110,000 in the bank's eyes, more with my husband's bonus that they didn't consider because he's only been at the job and received the bonus 1 year. I also had a new car loan as of November with a $450 payment. This was not ideal but neccesary due to my long commute in a rural area. Thankfully the car purchase was at the same time a new position with my employer and signficant raise so I think that balanced out in the DTI calculations.

I'll admit I was terrified of even applying for a mortgage with my student loans and other debt (credit cards that are down to about $9,000). My husband's debt is much lower but I don't have his as well memorized as my own as it was all before we were married in January. I think it can't hurt to talk to a bank about applying even with student loans. I think depending on credit history, income and other debt people may have. I am also lucky in that my husband had much smaller student loans that were paid off prior to our marriage. That definitly helps our financial situation. And both of us have pretty solid histories of on time payments. His median score was 720 and mine was 680. 

We close on Friday morning at 8am!

[Anonymous]

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@Lemmus wrote:

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@Anonymous wrote:

Just for reference, I am a man, not a woman .

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...so what you're really trying to say is ...three pairs of shoes are more than enough? 

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Exactly!!!!!