Feeling frustrated, don't know what to do....

[Kissyfur30]

We are trying to get approval for a home loan (first time home buyers) but we are running into a road block. Here is our situation:

We are paying off our credit card debt by the end of March, so that will not be an issue.  What is hurting us is our student loan debt.  With my fiance and I combined we have huge student loand debt, our payments will be around $600 per month.  We have not started paying back as we are both in school, but working full time.  We also have one car payment at $522 per month.  The car is 2 years old, bought it brand new, so we are not able to sell it as we are "upside down" on our equity in it.  The student loans and car will be our only debt once our credit cards are paid off, but we only make $57,500 combined, so our DTI is too high.

Does anyone have suggestions on how we can ever get approved in the near future with the high student loan debt and low income?

[Anonymous]

unfortunatley, until the income comes up, you are going to be out of range for a mortgage.  Your income qualifies for for maybe 2000 total debt with 1150 of that already used up on the loans.

[Anonymous]

Can you start paying extra on the car loan so you can sell it and buy something cheaper?  Or if you have multiple student loans, can you start wiping out some of the smaller ones?  Will you be able to consolidate the loans and have a longer pay-off period?  When I consolidated my payment period went from 10 years to 20 years.  Just some thoughts I had..  Congrats on getting rid of the CC debt!