Debt-to-income ratios can go as high as 50% or more with extenuating circumstances: such as but not limited to: Excellent cash reserves, excellent credit, stable income or additional down payment. The ratio between your current monthly expenses and your proposed monthly expenses are also taken Iinto consideration when exceding a 45% debt-to-income ratio. A full review of your loan application would be needed in order to determine if you are eligible to exceed ratios allowed by the Fannie Mae or Freddie Mac automated approval system.
I would be happy to review your loan scenario to determine if there is a better loan program for you. Call me! 202 573-6035.
Senior Mortgage Loan Officer
Fairway Independent Mortgage Corporation
Why is your lender asking for 5% down payment from the FHA standard of 3.5%?? if you are cash strapped to buy this home a "option would be a lender credit to help with closing costs or obtain a "Gift" to raise the new 5% down payment.
RE/MAX Realty Gropu
Are you moving to a conventional loan or has your DTI increased passed the threshold? If you are comfortable with the $9200 payment and love your potential new home, go for it. Ideally, you want to be no more than 50% of your take home combined income to go to home, bills, cars, etc but that is difficult to ask in this economy.
Budget wisely because you should have some emergency cash for home repairs and everyday occurrence