First time buyer: Debt to income ratio & student loans advice

[Jon Gibbs]

Hey everyone! First time home buyer seeking duplex/triplex and looking for guidance on debt to income ratio to apply for pre-approval and know how much mortgage I can afforded.

I've had a steady job 5+ years and a high student loan balance but low monthly pmt I have never missed. Do lenders calculate the high total balance that could negatively affect what I can afford, or is only the low monthly payment calculated? I used a DTI & mortgage calculator but am looking for clarification. I would prefer to have a higher down payment for a lower monthly mortgage payment and refinance my loans after. Could I afford approval for $375,000 based on info below? Or do I have to have a lower total loan balance by sacrificing a lower down pmt? I'm trying to avoid FHA if possible.

• Gross Monthly Income: $6,250 (75k/yr)
• Credit Score: Excellent
• Student loan pmt: $300 / month
• Student loan balance: 40k
• Down Pmt: $40k
• Mass Property Taxes: $5500 / yr
• Homeowner's Insurance: $1400 / yr

Thanks for any guidance!

Jon