First time home buyer?
May 11th, 2010 by admin
I am looking to buy a house this fall/winter. I have a higher debt to income ratio, (Mostly because of those damn student loans totaling 775 a month) . Am I better off paying down my debt or saving for a down payment, what would help me better qualify for a morgage, lower debt to income or a smaller 3-5% down payment? Can you even get a no money down loan anymore?(I only have about 500 saved so far for a down payment) If I do half and half it just seems like my debt is not moving down very fast or fast enough. What would you do?
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It’s near impossible to get a no money down loan anymore, but you also aren’t going to be able to get a mortgage if you have a high debt to income ratio.
I think you need to pay down your debt first (because you’re paying interest on that money), and then you need to save money for a down payment before you think about buying a house.
Talk to the bank,. and see if they would give you a loan which would cover the price of the home, and your student loans. Wrap everything into one monthly payment.