Debt to Income Ratio

This is just a "general" guideline which is around 35% is considered "normal". The only thing that should be counted in that, however, is things granted on credit like mortgage, car loan, credit cards. General household expenses should not be included (like car insurance, food). However, it really depends on what they look at in your area and sometimes higher is ok too depending on the mix (i.e. if you have a high amount of credit card debt that might not be good).

Thanks, that was exactly my question. On the sheet that my licensing worker gave me, they counted literally every expense that you could imagine for the month, so I am getting alittle worried. I mean, we do have money left at the end of the month, but not a huge bank account at all, as most of our savings went to infertility treatments :(

I just had to show on a budget sheet that I made more than I spent every month. They didn't care if it was only $1 more, so long as it was more. Basically, they just wanted to see that I could support myself and that the foster care payments would go towards the child and not to pay my debt or normal living expenses. The sheet actually made my budget appear better than it was because it did not include optional expenses such as cable TV, Internet, entertainment, etc. They never asked about how much I had in savings (good thing because it wasn't much!).

Simply tell the truth about ALL assest and ALL debt. :cop: Really, if you are worried or concerned enough to post on this forum, then be extra honest! If they find out you lied, you may later have a child yanked out from under you and that would be really bad for everyone, ESPECIALLY the child.

I used to work at a bank and we did second mortgage loan apps on the phone. This was 15 years ago, but at the time, all debt had to be less than 40% of your GROSS income. I think that is a reasonable guideline as it accommodates the 25% tax brackets.