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Updated over 6 years ago,
Higher loan amount: high salary w/ debt vs low salary no debt
Hello BP,
My brother and I are planning on purchasing a multifamily with an FHA loan to house hack. My brother has a constant monthly salary (web developer), whereas my monthly salary is more random (restaurant server). My brother also has debt, whereas I am debt-free. My question is which of us should apply for the loan to get a higher loan amount.
Me: Monthly gross income: $2500Computed Debt Ratio: 0 (no debts)
Credit Score (Transunion): 625
My Brother:
Monthly gross income: $5000
Computed Debt Ratio (using https://www.mortgagecalculator.org/calcs/debt-ratio.php): Frontend 19.5%; Backend 45.66%
Credit Score (Transunion): 667
So which of us should apply for the loan to get a higher amount? Also, would either of us cosigning for the other help?