Business Insider-
In the housing bubble, just about anyone who could apply for a mortgage was able to get one.
A decade after the crash, the largest lenders are loosening their standards again to make housing more accessible to first-time buyers.
Fannie Mae, the largest source of US mortgages, is making it a little easier for people with all kinds of existing debt — including student loans — to qualify for mortgages. The change will kick in on July 29 when the debt-to-income ratio (DTI), a measure of a borrower’s capacity to make payments, rises to 50% from the current 45%.
To understand what that looks like, let’s say a household earns $5,000 a month and makes monthly debt payments totaling $2,250. Its DTI, debt payments divided by income and expressed as a percentage, is 45%. That’s right at the current ceiling, and a lower DTI would be better.
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