my debt ratio is 27.00%... i personally bring home $3,000 a month (my husband brings home about the same). i have no credit, my husband has pretty bad credit. will debt to income ratio be a factor in buying a house? how likely am i going to be able to buy a house with just debt ratio?
2007-12-19 15:02:01 · 6 answers · asked by christina.yost 3 in Business & Finance ➔ Personal Finance
Your debt ratio is 27%? Sounds bad. The normal rule is that your house payments should be about 28% of your income, and debts on top of that shouldn't be more than about 6%. Right now, you're not in a position to buy a house until you can live on what you make. You need to create a credit history for yourself and your husband needs to clean up his. A house is not out of the question, it's just in the future until you realize what you need to do. Start reading books (from the library) on the subject, and also look on the net.
2007-12-19 17:51:26 · answer #1 · answered by Katherine W 7 · 0⤊ 0⤋
You can get a mortgage with no money down, and the rate is still good. I am a mortgage broker, and we do not rip everyone off, like the first person says. The problem is not the down payment, it is no credit score. Some programs allow you to build a credit score by showing phone bills etc. This is a possibilty, email me for more information on that.
Personally I would open up a small credit card and pay on it for two months, and then your score may show up.
27% for mortgage purposes is fine, after the mortgage is included they like it under 45%. They problem once again is not the debt ratio it is no credit score. If this is your debt ratio, only showing your income and not your husband, you have a chance at buying a house, even without a credit score.
2007-12-19 15:26:43 · answer #2 · answered by The Dragon 2 · 0⤊ 0⤋
interior the Debt fairness ratio, it fairly is Debt / fairness. many times in this ratio, Debt potential long term era debt basically, yet in some situations it would desire to advise entire liabilities. If long term era Debt (Bonds & Notes Payable) totals 10,000 and fairness is 10,000, then the Ratio is a million to a million. With Debt at 20,000, ratio turns into 2 to a million
2016-12-18 05:18:11 · answer #3 · answered by ? 4 · 0⤊ 0⤋
You have to get your debt ratio under 15% before trying to buy a house.
2007-12-20 10:29:56 · answer #4 · answered by Steve R 6 · 0⤊ 0⤋
Some of the best advice is to take charge of your debt, as soon as it starts to accumulate, or seek financial advice as soon as possible. Debt can be very overwhelming, but the longer you ignore, the bigger hassle it will become. Taking quick and responsible action towards debt will make bankruptcy seem like an unnecessary option, rather than the only option.
2014-10-14 10:03:21 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You would be way into sub-prime if you have not a significant down pauyment. I strongly advise against trying to buy without at least 10% down... even if you can get a 95% mortgage, have 10%, to keep a buffer to get you through any rough spots.
No creditor in today's market will give 100% mortgage unless they are ripping you off on price or interest rates.
2007-12-19 15:21:34 · answer #6 · answered by donfletcheryh 7 · 0⤊ 0⤋