I am one of the many people using IBR payments on my student loans. I know as of 6/30, FHA will be using 1% of the total loan debt to calculate DTI. Using my actual payment, DTI is around 28%. Using 1%, I am at around 45. My wife and I both have a very large amount of loans from Physical therapy and Occupational therapy schools. I know in certain circumstances, higher DTIs can be used. My combined income with my wife is 150-160 a year. My middle mortgage score from my 3B report on here is 721. Looking to upgrade to a larger home and finance around 220,000. I have had a USDA mortgage for the past five years with no late payments that was financed for 149000. I can knock my DTI down by trading in my truck and paying off a few things. Is lowering my DTI by trading in my truck worth the credit hit from a new account and the inquiries? I'm kind of at a loss with these new regulations. Thanks!
