Your DTI will determine your maximum purchase price. On a worst case scenario, if your DTI is over the maximum allowed, you will not be approved for financing. If that occurs, we would then explore the possibility of adding a non-occupying co-borrower (like mom and dad) or another occupying borrower to help bring that DTI down with the added income.
I'm always amazed at the amount of answers that get posted. And, the LENGTH of some of them is pretty astounding!
I think it's a good idea for you to talk to a qualified lender to determine how this impacts your mortgage approval. But, from what I know to be true, your student loan is considered secured debt, so it's different from, say, credit card debt, so it's taken by the lender as "good" debt.
It will be taken in to consideration just like your other debt vs. your income to determine what they feel comfortable loaning you for a property purchase. Luckily, the mortgage industry has gone WAAAAYYYYY more conservative on their lending practices again. It's for everyone's good.
Your best bet is to sit down with you local lender and fill out the Loan Application with them.
Lowell below is absolutely correct. All of your finacials and debts will play a role in you getting qualified for a loan. If you are a first time home buyer, there are many programs here in MN that assist with down payments if you qualify. I recommend you go talk to a local lender that is very versed on these programs to see if you qualify for any of them. In some cases it could be up to $10k.
Please give me a call and we can talk a little about your situation and I can recommend a lender or two that would be a great fit for your situation.
MN Real Estate Options
Broker/Owner/Short Sale Professional
Accredited Platinum Real Estate Professional
Phone: (952) 443-2056
Fax: (952) 236-6429
Cell: (612) 801-2355
Check out our website at http://www.mnrealestateoptions.com for great information on all aspects of real estate, for Buyers, Sellers and Investors
Basically if you had zero student loan debt you could afford more than currently does that make sense?