Debt-income ratio too high for loan approval

[Rachel Murphy]

Hello everyone,

I recently got in touch with a mortgage broker so he could run my numbers and tell me what I could afford to purchase. He came back and told me that my debt-income ratio is already at 58% WITHOUT considering a home loan, so I have no chance of getting approved without a cosigner which isnt an option for me. I have $100,000 in (mainly private) student loans which is exactly what is killing me. I'm still enrolled in school so my loans are "deferred" until I graduate and my naive self hadnt realized the benefit paying on them while enrolled until now. 

What is my next step here towards being able to start investing? I have money saved up that I was intending to put towards a down payment...that I'm now sitting on. But isnt a big enough contribution to lower my loans enough to get my own place. 

Can I invest a portion in a deal with others? How do I find those? Are they legitimate?

Are there other options/other loans? What resources do I have in this situation? 

I'm a single mother living at my parents so moving out is a high priority for me. 

Thank you in advance for any resources or information you share below. 

[Yuriy Skripnichenko]

@Rachel Murphy

Are you looking for a primary residence or for an investment property? 

You need to talk not just to one lender. Go to your local banks and credit unions. I'm sure some of them would be able to work with you. We have a local CU that won't take in consideration your DTI ratio at all for investment properties. All they need is a property with a rent roll that will cover all expenses and leave you some cash after. And they go up to 80% LTV.

Other option is to partner up with another investor. And use your money for downpayment and his credit for the loan. Or just have a part of the deal with your money. There is plenty of options. You just need to find the right one that fits you.

Hope this helps