Is there any company that will give a person a home loan with good credit and student loans?
Posted by StudentLoan on July 30th, 2010 | 2 comments
Iam perplexing to buy a house. we have fantastic credit. The usually complaint upon my credit is my tyro loans. we am removing them consolidated. we have a paper work which shows that, though no a single wish to give me a loan. (DTI is a problem) Is there any way around this? we am attempted of renting.
Comments
Try again after you have had your loans consolidated and you have your new payment schedule. Until the debts are officially consolidated, nothing is final and if the DTI is over the 39 to 41% (depending on lender) with mortgage payment, you won’t have any luck.
Well, it depends on the status of those student loans and how large they are. If you are paying them on time and at least the minimum payment due (which I would guess you are if your credit is excellent), then you shouldn’t have any problem getting a loan UNLESS those loans eat up a large part of your income. Most lenders want your debt-to-income ratio, including your mortgage payment, to be no more than 41% of your monthly income. Your mortgage should be about 30% of that number (some lenders may go more), so if the mimimum payments each month are eating up more than 11% of your income that’s probably why you can’t qualify. If that’s the case, then you’ll need to wait until your loans are really consolidated and you have the new payment before you try to get approved again.