Gross Income Percentage

Okay, in doing some research on this whole house search game and looking at qualifications local offices have for low income home buyers. And I did the math of what they want. They want anywhere between 25% to 33% of the gross income towards the mortgage payment. Well, If I could afford that number on the net side, I would have a descent rental up the street from where I'm currently located. On a duel income, that number wouldn't hurt so bad. My gross income is $2000/mo, 33% is $660 - $1600 (net) = $940.00. I would have to pay utilities, car insurance, cell & net, credit card payment and what ever was left would go to food and gas. Now, if the percentage was lowered for single income folks to 20%, that would put additional $260 in my pocket and take my left over net fund to $1200.00. I wouldn't be "house rich and cash poor" and it would be a huge benefit to all businesses around me because I would have more money to put into the economy. Now, I haven't done the math of the bigger picture, but I have a feeling that it would go along way towards feeding the overall economy. My only plan to get it changed would be on any future home purchases, lower the GIP on the mortgage requirements on single income to 20% and 30% on duel income. That would allow the new home owners to breath more easily knowing that they can afford their new home on the monthly basis and actually make ends meet. Yes, it would change the amount of the mortgage everyone could get, but it would mean that everyone would get a house they can actually afford, not one that is outside of their means. Those payments include insurance, taxes and interest. So, the $400 x 12 x 30yr doesn't = $144,000.00. It's closer to $90,000.00 or less. So, in my effort to keep my payments down to where I want them to be, my mortgage would be closer to $80k or less. I'm not one to give up easily or settle for something I don't want. I can't say for sure I would be looking at the 33%, but I could be looking at the average of the two.

An added note; in 2009, I was pre-approved for a USDA loan for 92k. :)