We met all the criteria except the positive net wealth due to student loans and in our budget we would have been net positive within 5 years, but 3 banks didn’t believe that.
We only got the loan because we had 15 % in down payment.
These are the current criteria:
Down payment - minimum 5% of the purchase price from your own funds
Debt factor - total debt must not exceed roughly 4–5× household income before tax
Interest stress test - your budget must handle rates of at least 4.5%
Positive net wealth - either upfront, or a repayment plan making it positive within max. 5 years
Minimum disposable income - $750 - $1050/month left after all expenses, and each child adds $400-500 to that amount.
Holy fuck when I bought my house just 5 years ago it was just the debt to income ratio and down payment I had to worry about. We probably wouldn’t have qualified for our current home loan back then if these requirements were active
They added even more regulation more recently.
We met all the criteria except the positive net wealth due to student loans and in our budget we would have been net positive within 5 years, but 3 banks didn’t believe that. We only got the loan because we had 15 % in down payment.
These are the current criteria:
Down payment - minimum 5% of the purchase price from your own funds
Debt factor - total debt must not exceed roughly 4–5× household income before tax
Interest stress test - your budget must handle rates of at least 4.5%
Positive net wealth - either upfront, or a repayment plan making it positive within max. 5 years
Minimum disposable income - $750 - $1050/month left after all expenses, and each child adds $400-500 to that amount.
Holy fuck when I bought my house just 5 years ago it was just the debt to income ratio and down payment I had to worry about. We probably wouldn’t have qualified for our current home loan back then if these requirements were active