Earlier this month, The Washington Post wrote an article regarding Fannie Mae raising its debt-to-income (DTI) maximum by 5 percent. What does this mean for people who want to buy a home? In short, it means that there is now more opportunity as the main deal-killer for buying a home has always been an applicant’s ratio of debt to monthly income.Earlier this
In some way or another we all have experienced the struggle of trying to balance that ratio. Managing to cover rent, pay bills and still chip away at our credit card debt or school loans is a real struggle. But, with Fannie Mae raising that ceiling to 50 percent, there is more opportunity for those who saw the value in investing in an education, or didn’t expect to have to pay that medical bill, or simply made some bad financial decisions. Whatever the reason for the debt, this increase is positive for homebuyers and now you can be one. So get ready because by August of this year, your chance of qualifying to buy a home just went up 5%.
To read the article reported in The Washington Post, check out the link below