There is nothing wrong with being a cook, especially if you are a good one. The income might not be as good as what was expected, but decent. One major problem is $56,000 in student loan debt. Because she is paying her student loans she can’t come close to qualifying for the mortgage she will need to purchase the home she would like.
She is currently paying $1450 per month for rent and her mortgage payment will be $1250. She does not want to do an FHA loan because the monthly mortgage insurance stays on for the life of the loan, unless she refinances and she can’t see spending the money to refinance. A conventional loan is her best bet, but the maximum debt ratio allowed would be lower than doing an FHA loan.
It is most likely that she will eventually decide to the bite the bullet and do the FHA loan. There are so many people in the same boat and there are no easy solutions. Based on the new maximum debt ratios that will go into effect in 2014, she wouldn’t qualify for either mortgage type.
