These days, mortgage applicants who carry high debt—relative to reported income—have countless options. Alternative lenders line up to help qualified borrowers stretch their buying power.
Non-industry types may deem that imprudent, but debt service ratios (at the time of origination) are only a secondary predictor of defaults.
What matters more are factors like credit score, loan-to-value and liquid assets. And in terms of loss mitigation, the property (e.g., type, quality, location, etc.) is understandably key.