Denied Mortgage Loan because of Debt-to-Income Ratio?

My husband and I applied for an FHA loan on a foreclosed home. The Home was a great price and the house payment was only going to be around 500 to 530 a month. That Included the taxes. Just wondering how they figured we couldn’t afford the house?? They said our debt-to-income ratio was to high. I don’t work right now, but I do draw a small check each month, but my hubby makes around 2800 a month and the only “debt” we have is a car payment, 400 a month and 2 credit cards which is $ 50 a month. How is that to much debt? Can someone please explain this to me cause I am confused. The only other bills we have are just normal bills like power, phone etc and we all ready pay $ 500 a month rent right now which is basically the same as what the house payment would have been. Any advice would be great cause I am very disappointed. 🙁
Also I want to add, they said our credit was good, which it should be we have worked hard on it, paying bills on time etc. Its just the debt-to-income thing.
we have $ 400 in credit card debt…. for 2 cards. Yeah… We do pay them off. Just now thats how much there is…
We are getting taxes back due to be deposited on the 13th and we were gonna use that as the down payment. See, just seems like there is something up.

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