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Home loans for high debt ratios

 

Are you finding it hard to complete the purchase on your home due to high debt? Has your bank recently depressed you and your family from buying that perfect house because of overlays over too much debt or past financial issues? If the answers to these questions are YES maybe you need to seek a home loan for high debt ratios.

Debt-to-income ratio shows how much of a percentage of your income you are paying towards your debt each month. High debt-to-income ratio means that a larger part of your income goes towards paying off your debt each month while a lower ratio means a smaller portion of your income is spent on paying off debt.

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Those planning on purchasing a home will find getting approved for home loans for high debt ratios is almost out of reach. Next, we will share 3 tips that will help you qualify for home loans for high debt ratio. It’s important, however, to remember that each and every lender has their own different lending requirements also called overlays, therefore each will analyze an applicant’s debt-to-income ratio differently.

To increase your chances of qualifying for a home loan, let’s take a look at how you can overcome your debt-to-income ratio and qualify to purchase that dream home!

1. Create A Plan - Unless you have a dire need to purchase a home and you cannot wait, we suggest that you contact us first seeking advice on which accounts to invest extra payments to reduce your debt ratio. Believable or not it makes a difference the order paying off student loans, credit cards, car payments, furniture or any other type of loans whether installment or revolving accounts. In an ideal scenario, having a debt ratio under 36% can increase your chances of qualifying for a home loan even though we have approved loans woth ratios over 50%.

2. Increasing Down Payment - Although paying a large down payment might not be a viable option for some applicants, it is something that if possible we suggest. Borrowers with IRAs or other retirement accounts need to consider the savings in interest and PMI expense vs increase in value of such assets. Not only may be a good investment but show the lender the seriousness of your decision of purchasing a home as well as indicating your commitment towards the investment, thus increasing your chances of qualifying for home loans for high debt ratio.

3. Government Assistance - If you find that home loans for high debt ratios is not an option that is available to you with private lenders, then turning to government home loan programs is the best possible option for you. These home loan programs were designed and developed by the government to promote homeownership by providing financial assistance to those unable to purchase a home through any other means due to lack of financial availability or a good credit history.

Created by the Federal Housing Administration, the FHA home loan is issued by approved FHA lenders and provides the following benefits:

* FHA loans allow the borrower to get approval for the home loan despite high debt ratio.
* You can purchase a home with down payment as low as 3.5%.
* There is lower mortgage insurance with a FHA loan.
* The FHA provides better interest rates compared to other home loans.

At Clear Lending, we will conduct a free analysis of your ratios helping you understand your chances of qualifying for home loans for high debt ratios. Simply contact us and we will help you with best plan to purchase your dream home.

Don't wait any longer and find out how much you can get Pre-Approved for.

Whether you are considering purchasing or refinancing an existing mortgage loan, Clear Lending can help you. Simply complete our secure and encrypted Pre-Approval Form online and we will contact you right away to review best options for you.

This advertisement is not an offer for an extension of credit. Programs available only to qualified borrowers. Programs subject to change without notice. Underwriting terms and conditions apply. Some restrictions may apply.

Customers Reviews:

  • Peter Molina • July 04, 2019

    FROM GOOGLE: I just want to thank Joan G. for an excellent job on our loan. This was our first home and the experience was great. He was very knowledgeable with all the different types of home loans. Joan explain the whole loan process clearly and how your credit works to get the loan. When it came to closing on the house all the paperwork was done properly with less stress on us. I would recommend using Joan G. at Clear Leading for your house and loans.

  • Jeffrey Rodriguez • January 30, 2014

    Joan:

    Thank you so much for all your hard work to make this loan a successful ending. You know this is not my first house, but my family and I are very grateful. I am not a first time home buyer, but we are very excited to be a home owner again. I thank you from the bottom of my heart once more for making this possible. Yes, I will definitely refer anyone who comes to me for the inquiry. I will never forget you Joan and Nathalie for what you have done and how hard you worked to make my dream come true. You are very efficient and professional. I am glad that you are my loan officer. Thank you very much once again.

    Sincerely,

    Jeffrey Rodriguez

  • Raul Orta • May 26, 2018

    After being denied by two other loan officers we decided to contact Joan. Not only was Joan able to get us a quick approval but we closed with less than the amount needed. He is dedicated and consistent. Thank you for making our dreams come true. We will forever be grateful!

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