@pacemorby: That 25% rule isn't wrong. It's just a bank's rule. Look at the list again. $60K a year gets you $1,250 a month. Go find a house in a decent area for $1,250. I'll wait. So people pick one of two doors. Stretch and become house poor, or spend a year fixing their credit to chase a better rate on a loan they still can't afford. You shouldn't do either... Just learn creative finance strategies and take over payments on a house that has a low interest rate attached. Terms the seller and I agree on. No bank approval, no credit checks, and no headaches. It's the loophole you never knew existed.