The No. 1 reason mortgage applicants get rejected is because they’re carrying too much debt relative to their monthly incomes, according to an article by the Washington Post.
This especially impacts millennials who are struggling to get on their feet early in their careers, but the good news is that might change soon — or at least be made easier for these potential borrowers: Fannie Mae, the country’s largest source of mortgage money, plans to ease its debt-to-income (DTI) requirements, which could open the door for a large number of new buyers. By July 29, Fannie hopes to raise its DTI ceiling from 45 percent, where it currently sits, to 50 percent.
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