What Should My Daughter Do to be Able to Buy Her First House? – Carol

“Dear Steve,

I’m not sure of the exact score, but my daugher’s (She is 26.) credit is good. She was in the process of trying to purchase her first home and was pre-approved for $100,000. Once into the process, she was denied because she had too much debt (student loans, car lease, credit card). She has a fulltime teaching job, still lives at home, and has no utilities or rent. She only has the car lease, student loans, and credit card to pay.

What other options might she have in purchasing her own home?


Dear Carol,

Thank you for contacting me.

So the statement about too much debt would indicate her debt to income ratio is out of wack.

Typically the backend ratio for a mortgage was 36%. This means that all the debt obligations, including the new mortgage, can’t be more than 36% of the monthly take home income.

Can you give me some additional details about her income and expenses?

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

Steve Rhode
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