Your ability to obtain a loan for a home purchase is based on several factors. Lenders typically make lending decisions based on three key ratios:

1. Loan-to-value ratio (LTV), which represents the ratio of the loan amount to the value of the home. With an 80% LTV (20% down payment), you will avoid monthly private mortgage insurance (PMI) and may receive a lower interest rate.
2. Housing ratio, which represents the percentage of your total income that goes toward housing expenses.
3. Debt-to-Income ratio (DTI), which represents your total debt payments, plus housing expenses, as a percentage of your total income.
   Lenders will typically look at any of these ratios as constraints, meaning once any of these ratio limits is reached, the amount of the loan will be capped.