Just need to get this off my chest.
Currently been working with several very marginal buyers who, by the skin of their teeth, qualify for a mortgage. Very low FICO scores, high debt to income ratios, very low reserves, but really want the house. Some have other good compensating factors like a non-qualifying spouse with income that will live in the property but will not be on the loan. That helps some, but... geez!
If this were my personal money, I'd never lend it to these borrowers. However, this is not my personal money; these are government secured notes and will get approved. I am very concerned that we are setting up these borrowers for failure if (God forbid) they lose a job or get sick, or a multitude of other factors.
Hate to say this, but... I wish we were tougher on our marginal buyers. Why are the Debt to Income ratios 55% (or higher!) for these types of borrowers? OK, now it's off my conscience!
Note: this is my personal opinion and does NOT reflect the attitudes or policies of my employer.