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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:

  • Jimmy Nuno • February 05, 2014

    Dear Joan,

    Thank you so much for helping us get our very first home. You were very helpful every step of the way. Thank you for your patience, kind manner, and incredible knowledge in getting us approved and into our first home in such little time. I will send anyone I meet wanting to get a home straight to you. You are the very best Joan! Thanks a million.

    Jimmy Nuno & Juany Diaz

  • M Johnson • December 18, 2018

    Thanks Joan, Patricia and Samantha for all your help throughout this process. My wife and I cannot thank you enough for making our dream to own a house possible. I will recommend all my family and friends. Thanks again.

  • Jorge Tovar • June 02, 2019

    FROM GOOGLE: Clear Lending, con Joan y su equipo, excedió mis expectativas. Desde la rapidez del proceso al ser un solo punto de contacto como realtor y lender, el conocimiento y el nivel de negociación, es una experiencia profesional y que da certeza. En todo momento Joan estuvo para contestar dudas, la comunicación es directa y al grano y sus técnicas de negociación muestran la experience que tiene en la industria. Al final, terminamos con la propiedad que tiene todo lo que buscábamos y, no solo eso, la propiedad está evaluada en $40,000 más del precio que pagamos ($40,000 in equity right from the start!). Comprar casa no es cosa sencilla y puede ser estresante, especialmente si tienes DACA; Joan lo hizo posible. Te agradezco Joan.

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