Sounds like a DTI issue. Is this your first home? Do you qualify for one of the first time homebuyer programs in your area (city, county or state)? Google for down payment assistance in your area to see if you qualify from an income standpoint. Most of the programs are income based on the numer of household members. There may also be other requirements to qualify fo rthe program.
If you make too much money for your local program, then you will need to find the funds for a down payment: gift funds or even a 401k type disbursement (if you have a 401k).
There are two ways to fix a DTI issue: increase income or reduce debt payments. There are two componets to reducing debt - find a less expensive property with less expensive real estate taxes and/or insurance; and reduce your current debt payments. You are already working on reducing your student loan payments. Do you have something else that is impacting your total debt ratio (a/k/a - back end ratio)? Typically a vehicle payment has a huge impact on limiting the amount of mortgage you can carry. Do you have a vehicle payment?
