How debts can impact your path to Homeownership

At Rent The Key to Own, we often meet renters who feel ready to take the next step into homeownership—only to find that a few monthly payments are quietly holding them back. From car loans and credit cards to boats and ATV's, these debts all play a role in how much mortgage you can qualify for.

Lenders don’t just look at your income and down payment; they also review your debt-service ratio—how much of your monthly income goes toward existing payments. The higher your debt load, the smaller the mortgage you’ll qualify for.

For example, a $600 car payment can reduce your mortgage eligibility by up to $100,000. Even deferred student loans and credit card limits—not just balances—can reduce your borrowing power.

But there’s good news: a few smart moves can make a big difference.

• Pay down revolving balances: This improves both affordability and credit score.

• Hold off on new loans: A new car or line of credit can tip the balance against approval.

• Consolidate strategically: Combining debts can lower monthly obligations and improve your ratios.

Our team can walk you through personalized “what if” scenarios—so you can see exactly how paying down or consolidating certain debts could move you closer to owning your home.

Let’s chat about your goals and map out your best path from renter to homeowner—together.