My advice would be to find out how much you are qualified to buy and stay in that limitation.
If you qualify for the first time buyer federal tax credit buy a decent used car with SOME of it and save the rest. If you are living at 50% currently you need to evaluate where you can cut back. Long term you need to save for your future and 50% DTI does not allow you pay yourself first.

Hi Jenny-

You may want to try a Realtor that has closed numerous transactions with DTI over 50%. http://www.bobelliotmnrealestate.com

Good Luck.

Leslie

Dana is correct but let me give you some more specific guidance:

You will definitely need 3.5% of the price of the house for down payment PLUS I would say a 2 month reserve for unexpected things that come up.

If you have 6 months left on the car lease why don't you buy it out now? What happens at the end of the 6 months... are you going to get a new car?

Ask your landlord if you can rent month-to-month of sign a 3 month or 6 month lease. It will be at a higher price but shouldn't be crazy.

Family can help you financially... don't forget about them.

If the loan officers you have spoken to have not been willing to help you put together a plan for when you can buy, I'd be happy to share the names of my preferred lenders who do.

Thanks,Dunes---It's nice to know that there is somebody out there that's on the same page(REALITY?)

Dana, Thanks for once again reminding me there are still responsible Pros...

Unfortunately loan officers are not in business to meet your needs--you really need to be in a position to meet their criteria for financing a home. In this market,there is really very little room for deviation from the minimum required 620 credit score plus 3.5% down for FHA & 720 and 20% down for conventiional.You have to be able to prove that you can make the monthly note,plus taxes,insurance & maintenance. If the roof or AC needs to be replaced,can you take care of it? Can you afford to buy lawn equipment to keep up the property? if not,you should really continue to rent,get your debts under control & wait a few years before considering a purchase.