debt to income ratio over 55%
Hello all,
My problem is I am having trouble finding financing because my debt to income ratio is right at 55%. The lenders I have talked to say it needs to be around 45%. How can I get financing? I have the cash to buy the price range house I am looking for, but I really don't want to do that. So any help would be appreciated. Also I have a mortgage with about 60000 in equity, which is causing most of the debt but I don't want to pay that off either. Thanks
William
William
Most Popular Reply
I ran into a similar problem last year when buying a home I wanted to finance. I ended up focusing on my debt and quickly realized that my a credit card that reported a $100 in minimum monthly payments equated to having to have $181 (100/0.55=181) in income to offset it. I quickly paid off all credit cards and waiting 30 days for that to be reflected in my credit report, I already paid off my car years ago so that wasn't an issue and that helped my reduce my debt to income ratio.