To answer properly we would have to know all these things.
High DTI would be above 43%, but some lenders will still approve you up to about 48% with other factors, like down-payment and other assets. If your new house payment will cause payment shock, or raise your DTI above this, then your chances are slim.
Good credit would be above 680, but some lenders using FHA will approve you down to about 620.
It is one thing to qualify for a loan, and another one to be able to afford it. Make sure you are getting into a loan that will not adjust. Ask questions about your property taxes, home owners associations and all other payments that could possible change. Also consider the cost of gas for your car and utilities for your home.
I don't want to talk you out of buying, because this is an absolutely great time to buy. I want to make sure you buy something you can afford for the long haul, because when you buy in this market; you need to make sure you can afford it comfortably. It is no secret that with the housing market the way it is you will not easily be able to refi or sell. Get a loan you can handle today and for the long term.
Any one that helps you with your home loan should be walking you through all of these questions and concerns.
I know that is probably not what you want to hear but I would hate to find out that you were able to get a loan but then had difficulty in making payments on your mortgage and/or other debts and became a statistic? There are a lot of factors involved such as your current income situation, is there a co-borrower, what is your time horizon, do you have any credit card debt, student loans and a host of other factors that would go in to my advice. Find a good local mortgage planner and have them fully assess your situation. I hope this helps.
Contact me for an interview to see if you qualify for my Realtor's Rebate Program.
Mattye P. Smith
Colonial Real Estate
Down payment helps too.....
How high are we talking about?