We are looking to purchase our first home, and are having a couple of issues with the financing aspect. We both make roughly 40K per year and don't have much debt to speak of. My credit score is around 600 so I can't be on the loan application, but hers is around 720 so we're going to finance in just her name. The problem is that both of our cars are listed on her credit report, even though I make both car payments and she's never paid one. Does anyone know a) of any lenders who are a bit more lenient in forgiving DIR requirements if we can provide proof that the cars are paid for, or b) of any lenders who have higher limits on DIR, or still use things like stated income, or can consider my income in any way? We are looking for an FHA loan in MA. Thanks so much!!

Your question seems simple but is very complicated.

Yes there are lenders who will not count a specific debt in a borrowers ratios if significant proof is shown that someone else makes the payment on that debt.

Contact a local lender who will take the time to review your situation... you will most likely get lost in a "call center" and get a total run around.

Make sure the lender you talk with has been in the business long enough to know true manual underwriting and will look at all options for you.