Marco Santarelli

MAY 9, 2025

Other Roadblocks: Credit, Debt, and Not Enough Houses It's not just about the price and the down payment, though. Tougher Credit: After the housing crisis in 2008, banks became much stricter about who they lend money to. So many people I know have tens of thousands, even hundreds of thousands, of dollars in student loan debt.

Debt-to-income ratio

Redfin

JULY 24, 2025

Similarly, HomeReady and Home Possible programs, backed by Fannie Mae and Freddie Mac, respectively, are designed for low-to-moderate-income borrowers and typically require a minimum 3% down payment. FHA loans are designed for primary residences, meaning you must live in the property you purchase with the loan.

FHA loan

Redfin

JULY 31, 2025

Look into first-time homebuyer benefits Many programs are designed to make homeownership more accessible for first-time buyers by reducing upfront costs, lowering monthly payments, and helping with mortgage qualification. Build an emergency fund An emergency fund is a cash reserve designated for emergencies and other uncommon expenses.

Purchase and sale agreement

Rochester Real Estate

NOVEMBER 5, 2015

Lenders rely on credit scores to evaluate the risk of lending to borrowers. Joint borrowers must have a stable employment history and sufficient income to meet the lender’s requirements. Lower debt-to-income ratios indicate a higher likelihood of loan approval.

Debt-to-income ratio

Marco Santarelli

MAY 2, 2025

Texas: Despite its size and varied markets, Texas generally benefits from a strong economy and a competitive lending environment. These are often “teaser” rates designed to grab your attention, and they might come with hidden costs or strict requirements. Don't Fall For the “Teaser” Rates!

Mortgages

The Close

JULY 1, 2025

FHA mortgage loan Conventional mortgage loan Credit score 500 620 Income required (debt-to-income ratio) 50% 36% to 45% Minimum down payment 3.5% Income requirements When it comes to income, FHA lenders will generally allow a maximum of a 50% debt-to-income ratio (DTI).

FHA loan

Rochester Real Estate

NOVEMBER 5, 2015

In the simplest terms the main difference is that a bank has its own lending criteria and offers loans by using its own funds. This fantastic article has detailed some nuances that aren’t as talked about such as second tier entitlement, residual income, and purchasing a multifamily. In contrast, a mortgage broker is a middleman.

Finance

Redfin

JULY 30, 2025

In fact, today’s first-timers are older than ever, thanks to factors like rising home prices , student loan debt, and stricter lending standards. Yes, your debt-to-income ratio matters. If your student loan payments are high relative to your income, it can make qualifying for a mortgage more difficult.

FHA loan

Housing Wire

SEPTEMBER 9, 2020

In June, the bureau released two proposals regarding the QM Patch, which allows loans sold to Fannie Mae or Freddie Mac to exceed the 43% debt-to-income ratio the Bureau had established in its Ability to Repay/Qualified Mortgage rule. c) does not prescribe a specific monthly debt-to-income ratio with which creditors must comply.

Debt-to-income ratio

Housing Wire

MAY 21, 2021

The Urban Institute regularly cites statistics showing IMBs do a better job than banks of serving underserved borrowers, as measured by metrics such as FICO scores and debt to income ratios. CRA is designed to prevent banks from diverting funds OUT of a community where they take deposits in order to lend in other communities.

Debt-to-income ratio

Housing Wire

MAY 25, 2022

There is also the matter of efficiency versus increased lending cost. With so many different types of borrowers beginning to look towards non-QM for their lending needs, LOs and brokers are wise to incorporate a diverse set of loan options. With non-QM in a current transition state, forecasting future demand levels can be tricky.

Debt-to-income ratio

Housing Wire

AUGUST 7, 2023

The financial incentives are simply not there for mortgage companies that want to do more minority lending; therefore, it shouldn’t be a surprise that most banks and mortgage lenders do just enough minority lending to stay out of regulatory trouble but secretly have no desire to do much beyond that.

Closing

Housing Wire

AUGUST 26, 2024

Middleman pointed to average loan-to-value ratios of 50%, average debt-to-income ratios in the low 40% range, and credit scores in the low 700s as indicators of an “extraordinary” credit. And we really think we’re gonna have these customers with us for a really long time. That’s our goal.”

Mortgages

HomeLight

JUNE 22, 2023

Why must there be so many lending companies, all of which have different requirements and terms? Debt-to-income ratio After looking at how much money is flowing into your household, you’ll want to write down your monthly debts. That’s because lenders will also look at your debt-to-income ratio, or DTI.

Debt-to-income ratio

HomeLight

SEPTEMBER 1, 2022

Student loan debt doesn’t make it impossible to live out your dream of homeownership; it just makes it a bit more difficult because of its impact on your debt-to-income ratio (DTI), credit score, and down payment savings. Student loan interest rates are pretty low – they’re designed that way.”.

Debt-to-income ratio

HomeLight

JUNE 21, 2023

If you’re one of the roughly 4 million teachers nationwide, purchasing a home might be a lot easier than you realize, thanks to homebuyer programs for teachers specifically designed to save on down payments and other fees. Others, such as the California Employee Loan Program, or CELP , are targeted to residents in a particular state.

Loans

Rent, Buy & Sell

FEBRUARY 7, 2021

As such, if your credit score is below 500 you should probably work on rebuilding your credit score first, because even with alternative lending options this score may be too low to finance a home. Instead, they guarantee the loan by approving and insuring banks and lending institutions.

Loans

HomeLight

NOVEMBER 21, 2023

A bridge loan is essentially a financial tool designed to help you, the homeowner, when you’re caught in the common dilemma of needing to buy a new home before selling your existing one. Imagine it as a short-term lending solution that taps into the equity of your current home. What is a residential bridge loan?

Equity

Realty Biz

JULY 23, 2023

Recent changes and technological advancements are shaping the lending landscape. Understanding 1099 Income and Its Implications on Home Buying When it comes to buying a home, it's important to understand the implications of 1099 income. This ratio compares your monthly debt payments to your monthly income.

Debt-to-income ratio

HomeLight

OCTOBER 27, 2020

The first reason is privacy — you might not want your lending company to have access to all of your financial details, for example. These rules are designed to create a standard for documenting and verifying a borrower’s financials that creates a presumption that the borrower can afford the loan they have applied for.

Debt-to-income ratio

Realtor.com

AUGUST 26, 2020

The Mortgage Bankers Association’s Mortgage Credit Availability Index, designed to gauge access to a variety of mortgage products, shows consumer access to home loans fell about 17% between March and July. Many have raised minimum credit scores and lowered maximum debt-to-income ratios.

Loans

HomeLight

MAY 26, 2021

The VA either guarantees the loan or lends directly so that you don’t have to put anything down on a house. The VA-approved lender will set the credit score limits and maximum debt-to-income ratios. Do you make around a median income for your area? Do you make around a median income for your area?

Debt-to-income ratio

HomeLight

MARCH 9, 2023

Department of Housing and Urban Development has the Good Neighbor Next Door Program , designed for public servants willing to live in a single-family home in a revitalization area. The following national banks provide programs for low-income and buyers of color. The 203(K) loan is best for buyers interested in buying a fixer-upper.

Loans

Marco Santarelli

APRIL 11, 2024

High Levels of Household Debt : When households take on more debt than they can handle, often due to the availability of easy credit , it's a warning sign. A high debt-to-income ratio can lead to financial strain and, eventually, to a market correction.

Debt-to-income ratio

HomeLight

OCTOBER 15, 2020

Maximum debt-to-income ratio of 43% (this is known as DTI, and it looks at how much debt you pay each month versus how much income you bring in). Minimum down payment amount of 5% (or even as low as 3% for certain programs for low- to middle-income borrowers). Here’s how it works.

Loans

Realty Biz

SEPTEMBER 30, 2023

In addition to credit scores, lenders also consider factors such as your income, employment history, savings, current debts, and the value of the home you intend to purchase. Demonstrating a stable income, sufficient savings, and a low debt-to-income ratio can strengthen your mortgage application, even with a low credit score.

Finance

HomeLight

MARCH 30, 2021

We’ve combed through the lending data and talked to some real estate and money experts, too, to help you figure out exactly what you need to do to avoid being house poor — before you sign on that dotted line. Minimize your debt. On a related note, now’s a good time to reduce your existing debt, as much as you can.

Debt-to-income ratio

Norada Real Estate

JUNE 25, 2024

The Federal Housing Finance Agency (FHFA) has requested public comments on this proposal, which stipulates that these second mortgages would be subject to a combined loan-to-value ratio lower than 80%. This move is designed to provide homeowners with more cost-effective means of accessing their home equity. As the U.S.

Equity

HomeLight

SEPTEMBER 2, 2021

And when lending standards are less stringent, more buyers get the opportunity to enter into homeownership. These programs are specifically designed to help you pay for the down payment, and most can be used with an FHA loan. This national program, right for creditworthy, low- and moderate-income buyers, offers 3.5%

FHA loan

HomeLight

FEBRUARY 12, 2021

To obtain pre-approval, the buyer must meet a set of lending criteria for their mortgage following FHA requirements; these are generally easier to meet than those of conventional loans in several ways. An official FHA loan appraiser must conduct the appraisal, following HUD’s designated guidelines. down payment. down payment.

FHA loan

HomeLight

OCTOBER 11, 2021

The FHA sets loan limits, or maximum lending amounts. How much income do you earn relative to your debts? With FHA loans, your debt-to-income ratio will be taken into consideration. Your debt-to-income (DTI) is expressed as a ratio, showing how much debt you carry relative to your income.

FHA loan

Redfin

AUGUST 12, 2024

These loans are designed for higher-value properties and come with stricter requirements, including strong credit, larger cash reserves, and higher down payments. Department of Agriculture and are designed to promote homeownership in rural areas. Income stability : Lenders prefer borrowers with a stable income and employment history.

Loans

HomeLight

DECEMBER 30, 2021

A debt-to-income ratio under 43%. Reliable income with proof of employment. Your debt-to-income ratio cannot exceed 50%. Good Neighbor Next Door is a HUD-backed loan program designed to help public servants purchase qualified homes through a 50% discount. home value.

Loans

HomeLight

NOVEMBER 17, 2021

Fortunately, there are first time home buyer programs designed to make the process a little less stressful — you just need to know what they are and where to look. First-time homebuyer programs are just that: programs designed to help people purchase their first home. Have proof of employment and reliable income.

FHA loan

HomeLight

OCTOBER 15, 2020

While the USDA does not designate a minimum credit score, lenders will have a minimum requirement of typically 640,” explains mortgage loan officer Jane Hammond. Candidates for USDA must adhere strictly to the housing-to-income and total debt-to- income ratios as well.

Loans

HomeLight

AUGUST 31, 2021

The FHA doesn’t lend money itself. Adequate income. The number varies from program to program, but you’ll need a minimum debt-to-income ratio to qualify. This approach calls for you to put money into a designated account at a bank or other institution. Borrowers have to meet income limits.

FHA loan

HomeLight

OCTOBER 2, 2020

The pandemic increased the potential risk of lending, which translated to more overlays, or requirements designed to protect lenders for riskier loans. Buyers with lower credit scores and higher debt-to-income ratios are more likely to face overlays, especially when shopping at the very top of their price range.

Closing