Buying a house and consolidating debt

21-Mar-2019 19:00

There is no rule that says you have to use the entire forty-three percent of your household income on debts.It's merely the maximum level at which home buyers can get typically approved.At 33% DTI instead of the maximum forty-three percent, your maximum purchase price for a home falls to 0,000 -- and this is how student loans can affect your mortgage loan approval.The more student loans you carry, the less home you can afford.And, despite the historically low levels of today's mortgage rates plus a wide array of low- and no-downpayment mortgages available to first-time buyers, student-loan-holding consumers are discouraged.Many would-be buyers aren't even applying -- worried that their debts will make homeownership impossible.

However, there are ways to reduce what you owe to the government each month to help you qualify for "more home".

Other traits matter, too, such as your status as a U. citizen and your employment history, but these three matter most.

Down payment matters because the size of your down payment determines for which mortgage loans you might be eligible.

For example, the VA mortgage and UDSA home loan both allow for 100% financing.

Therefore, if you plan to use either of these two programs, it doesn't matter whether you have a down payment or not. Your credit score will determine for which programs you can be eligible.

Concerns about student loan obligations are among the reasons why first-time home buyers account for a smaller percentage of the housing market as compared to recent years.