 TITLE: Do I Earn Enough to Afford a $200,000 Mortgage? CONTENT: What Are the Different Loans and Programs for First-Time Homebuyers?\n--------------------------------------------------------------------\nWhile the 28\/36 rule applies most conventional mortgage lenders, certain programs designed to help first-time homebuyers, veterans and certain low-income home buyers allow some exceptions:\n*   Mortgages backed by the Federal Housing Administration, known as FHA loans, are designed to help first-time homebuyers qualify for mortgages and allow back-end DTIs of up to 43%.\n*   Mortgages known as VA Loans, issued through the U.S. Department of Veterans Affairs, are geared toward veterans, service members and qualifying spouses, and allow back-end DTIs of 41%.\n*   The maximum back-end DTI allowed on USDA Loans—mortgages issued under guidelines set by the U.S. Department of Agriculture to help low-income borrowers buy homes in certain rural areas—is 46%.\n*   State and national programs designed to assist with homeownership may be able to help if you're having trouble meeting the down-payment requirements for a loan, or if your income falls below the level needed to secure some conventional loans.\nThe factors that determine the amount of a monthly mortgage loan, including your credit score and history and down payment amount, along with your monthly non-housing debt expenses, play a major role in determining how much income you'll need to afford a mortgage. Understanding DTI and the 28\/36 rule can help you anticipate your needs and plan for the mortgage-application process.\nIf you need to improve your DTI, there are two things you can do:\n*   **Increase your income.** This often requires attaining a promotion and raise, or taking on a second job or \"side hustle.\"\n*   **Reduce your monthly debt expenditures.** You can do this by paying down credit cards or paying off loans. Paying down debt can also help improve your credit scores and may mean you'll get more favorable payment terms you apply for a mortgage.\nNaturally, applying both approaches at the same time compounds their effectiveness.\nBuying a home is the biggest investment most people will ever make, but with resourcefulness and gumption, you can make it more affordable. END