In the process of buying. Without giving too much detail, I would love some help figuring out our debt to income ratio and why it’s coming up different from what the lender is calculating.
Debt: $84 credit cards, $257 car, $246 student loan, and the future mortgage $1360 (the highest number we’ve heard this far for it). Income: $52,000 According to our calculations from online calculators that should amount to about 45% and we could pay off the credit cards to get it to around 43%. However, our lender is saying the number he calculated is 47% and paying off credit cards would put us at 45% which is too high to receive the loan.
Is there a number we are missing?? We are trying to get down payment assistance if that makes a difference. He did mention that the down payment assistance loan would require 1% down from the home price total up front to qualify. I would appreciate any help, and I can give more info if needed!