Say you have solid credit scores and money in the bank but because of student loans or uninsured medical bills, your debt-to-income ratio
exceeds the maximum that federal rules generally prescribe.
While the debt-to-income ratio
may be an indicator of household financial stress, Chairman Greenspan also pointed out that the ratio reflects a rise in home ownership, improved information technology that enables lenders to reach more households, and increased home equity loans resulting from home price appreciation.
Students have the right to choose the education and career path that they will pursue, and not have it restricted by arbitrary debt-to-income ratios
Others eligible for the program include residents who have funds for closing costs but whose debt-to-income ratio
is too high, and those who have money for closing costs but want money to buy appliances and other move-in necessities.
Figure 3 combines information from the Federal Reserve's Survey of Consumer Finances (SCF) on the distribution of household debt with our estimates from the flow of funds accounts on the debt-to-income ratio
of the U.
His Social Security number was listed on my credit report and, although he was paying all of his bills on time, this gave me a higher debt-to-income ratio
according to the loan officer.
It's not a perfect formula, but figuring out your debt-to-income ratio
will give you some idea of where your money is going.
When Renee Taylor (not her real name) of Fayetteville, North Carolina, and her husband were shopping for a home 10 years ago, a mortgage officer at the now-defunct Home Federal Savings & Loan Bank suggested Taylor voluntarily give up her 1985 Nissan Sentra to lower her debt-to-income ratio
Consolidation can help people with their debt-to-income ratio
if they need to go under the scrutiny of any kind of lending institution," he says.
The introduction and very active promotion of a new product -- called the Neighborhood Homebuyers Mortgage -- which requires only a 5 percent downpayment and allows applicants a higher debt-to-income ratio
than that permitted by standard risk criteria.
And, my debt-to-income ratio
is higher than those profiled, particularly since I am just starting down the road to financial health and well-being at 28 years old.
Before you co-sign for anyone, insist that they calculate their debt-to-income ratio
(see formula below), since it's a good indicator of whether they have debt problems.