Debt-to-income ratio for a mortgage help.?

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my wife and i are tryng to get a mortgage loan for a home. i am currently in school, not working, and due to bad credit history, will not be on the named on the loan. my wife makes good income, and has a good credit score. the problem we are running into is her debt-to-income ratio. She has a high amount of student loans from college. with her minimum loan payments factored in, we do not meet the standards in the debt to income ratio category. The Company she works for pays her student loan payment for her each month. we have shown our potential lenders the paperwork proving that her company covers the student loans each month, and yet they cannot give us a straight answer as to whether we will be able to get a loan. this loan payment is documented on all of her pay stubs, and is in her contract with the company. the banks still tell us that the minimum loan payments may still be factored in.

i would think that the fact that her loan payments are made for her would either
A.) eliminate her minimum payments from consideration, putting us within the guidelines for the loan, or
B.) the payment made should be counted as income from the company, also putting us within guidelines for the loan.

we have presented this to a small community bank and a nationwide lender, and got the same “i have to look into it” answer from both. we qualify for the loan in every other category. what am i missing?

we still have to present this to a credit union, but may be difficult because i read that credit unions dont always loan to first time home buyers. please help.

  1. Reply
    February 5, 2011 at 8:40 am

    Just be patient, qualifying for a home loan usually takes months. The bank is probably worried that your wife could lose her job and then owe the student loans.

  2. Reply
    February 5, 2011 at 8:43 am

    Most lenders require that payments made on behalf of a borrower by an employer, family member, etc. be documented for an extended period of time; usually not less that 6 months.

    Your request is reasonable however, and I feel you should be able to get a loan; all else considered.

    There are a few items which may cause additional issues, ie. whether or not you reside in a community property state, how long your wife has been employed, what kind of loan you’re applying for, etc.

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